Is XYZ a good stock to buy? We came across a bullish thesis on Block, Inc. on PrimeTrading’s Substack by Alex. In this article, we will summarize the bulls’ thesis on XYZ. Block, Inc.’s share was trading at $58.99 as of March 19th. XYZ’s trailing and forward P/E were 27.54 and 15.80, respectively according to Yahoo Finance.
Block, Inc., together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. XYZ, under Jack Dorsey’s leadership, has executed a transformational pivot that is redefining the fintech playbook. The Q4 2025 earnings release sent shares up 22% in after-hours trading, reflecting the market’s embrace of the company’s bold “intelligence-native” strategy. Rather than pursuing growth at all costs, Block is shifting from a labor-heavy payments company into a high-margin, AI-driven financial platform.
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The quarter showcased strong operating performance: adjusted EPS of $0.65 beat expectations, gross profit surged 24% YoY to $2.87 billion, and adjusted EBITDA reached $930 million. More importantly, Block raised its 2026 guidance, targeting $12.2 billion in gross profit and $3.2 billion in adjusted operating income, implying a 26% margin and positioning the company on track for the “Rule of 40,” a key benchmark for sustainable growth and profitability.
Central to the transformation is a workforce reduction exceeding 40%, shrinking the team from 10,000 to fewer than 6,000, with AI integration across engineering, customer support, and go-to-market functions serving as a capability multiplier rather than merely a cost-cutting exercise. The core business units are thriving: Cash App’s gross profit jumped 33% YoY, driven by consumer lending growth and expansion into full-suite banking services, while Square maintained resilience, with GPV reaching $65 billion and international GPV growing 24%.
The market is re-rating Block as a disciplined, cash-generating fintech, with the AI-driven restructuring demonstrating a path to sustainable margins. The ongoing share buyback program further supports the stock, now trading significantly above prior lows. With this intelligence-native model, Block has set a new standard for fintech efficiency, combining growth, profitability, and operational leverage in a way peers are only beginning to explore making it an attractive opportunity for long term investors.
