Key Stats for Block Stock
- Price Change: +4.9%
- Current Price: ~$56
- TIKR Model Target: $134
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What Happened?
Block (XYZ) skyrocketed 4.9% to close near $56 on Friday, driven by a major operational overhaul that has investors aggressively bidding up the stock.
The catalyst was the confirmation of a 10% workforce reduction, cutting roughly 1,100 jobs as part of CEO Jack Dorsey’s “Rule of 40” efficiency drive.
This move signals a definitive end to the “growth at all costs” era.
Furthermore, investors are cheering the pivot, viewing the cost cuts as a direct injection into the bottom line that will accelerate GAAP profitability.
The restructuring also clears the path for the long-awaited integration of Square and Cash App into a single “neighborhood” ecosystem.
This ecosystem is a strategy designed to lower acquisition costs and lock in users.
The TIKR Valuation Model suggests the market is vastly underestimating the impact of these higher margins.
It projects a Target Price of $134, implying that the stock is currently trading for less than half of its intrinsic value as it re-rates from a “growth” stock to a “profit” powerhouse.
See analysts’ growth forecasts and price targets for Block stock (It’s free!) >>>
Is Intuitive Machines Undervalued Today?
During the UBS Global Technology Conference, Block Business Lead Owen Jennings laid out the bullish case for this profitable growth phase.
He stated: “We do expect an acceleration in GPV growth as well as gross profit growth over that 3-year period.”
Jennings highlighted the massive “network effect” opportunity, noting: “I see neighborhoods as the most important thing for the next 5 years… It’s basically, I think, the third chapter for Block.”
Crucially, he addressed the margin potential directly: “You can see how things like neighborhoods… flow through to higher incremental margins.”
Read the full Block Transcript on TIKR to see the 2026 Outlook >>>
According to TIKR’s Advanced Valuation Model, the stock is poised for a massive re-rating.
- Target Price: $134
- Current Price: ~$56
- Potential Upside: +139.3%
Valuation Deep Dive
The investment case for Block is a “turnaround” play driven by ruthless efficiency and ecosystem synergies.
With the stock trading at ~$56, the market is skeptical, but the $134 target assumes successful execution of the efficiency plan.
- The Cost Cuts: The 10% workforce reduction is a tangible step that directly boosts the bottom line and accelerates the path to GAAP profitability.
- The Ecosystem Moat: By connecting Cash App users directly to Square merchants (“neighborhoods”), Block creates a closed-loop economy that competitors cannot replicate.
- The Value Gap: The $134 target implies that as Block hits its goal of 50%+ incremental margins, it will command a premium valuation multiple similar to mature software companies.
If Block can execute this pivot without stalling growth, the path to $134 is paved by rapid earnings expansion.
Conclusion: Leaner and meaner. With a massive 139.3% upside potential to $134, Block offers a high-reward opportunity for investors who believe that Jack Dorsey’s efficiency pivot is the real deal.
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How Much Upside Does Block Stock Have From Here?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
