Block Inc., Jack Dorsey’s payments company, tumbled as much as 14% after reporting results that fell short of some analysts’ expectations.
Jefferies Financial Group Inc.’s Trevor Williams said in a note that Block’s earnings report “lacks oomph,” even after the company increased its adjusted profit outlook for the rest of the year when it reported second-quarter results Thursday. BTIG LLC analyst Lance Jessurun called Block’s July trends “disappointing.”
Shares of the San Francisco-based company fell 11% to $65.14 at 12:32 p.m. in New York, after dropping to as low as $63.38 in the biggest intraday plunge since March.
Williams cited limited upside for Block’s Cash App, which started as a person-to-person payments app and now offers access to a variety of financial products. He also called “tepid” one measure of how many dollars are processed by Block’s payments systems.
Both Cash App and Square, a payments platform geared toward small and midsize businesses, beat expectations in the second-quarter.
Read More: Block Raises Adjusted Profit Outlook as Use of Cash App Soars
--With assistance from Bre Bradham.
