We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Block (SQ) Boosts E-commerce Reach With Afterpay-Rokt Deal
Read MoreHide Full Article
Block’s (SQ - Free Report) “Buy Now, Pay Later” (BNPL) platform, Afterpay, partnered with the e-commerce technology company Rokt in a bid to boost the online shopping experience for customers.
Notably, this partnership will enable Afterpay and its retail partners to provide relevant advertising experiences to targeted customers during the checkout process using Rokt's e-commerce solution.
Further, it will allow the provision of highly relevant checkout offers, enhancing customer lifetime value.
The company is expected to gain solid traction across e-commerce shoppers on the back of its latest move.
The latest move positions the company well to strengthen its position in the global e-commerce space.
Per a Mordor Intelligence report, the global e-commerce market size is expected to reach $16.24 trillion by 2028, exhibiting a CAGR of 15.8% between 2023 and 2028.
A Grand View Research report indicates that the global e-commerce market will witness a CAGR of 15% during the forecast period of 2023-2030.
Solidifying prospects in this promising market is expected to instill investor optimism in the stock.
However, product development expenses, increasing competitive scenarios and foreign exchange headwinds continue to remain concerns.
Notably, Block has lost 10.4% in the year-to-date period, underperforming the industry’s rally of 32.1%.
Afterpay’s Collaborative Movements
The latest move is in sync with Block’s deepening focus to strengthen its Afterpay platform through collaborative movements.
This apart, Afterpay recently partnered with Rite Aid to provide a flexible payment option for household necessities like health and beauty, baby care and groceries at over 2,000 locations nationwide.
Further, it collaborated with top retailers like Boden, Fresh, LuluandGeorgia, Quince, Swarovski and Wolverine Worldwide to enable online shopping and payment over time.
Also, Afterpay partnered with Nift Networks to launch an exclusive rewards program, offering customers the chance to discover and try new products and services.
We believe that all the above-mentioned endeavors will likely strengthen Afterpay’s growth trajectory, which will likely contribute to the overall financial performance of Block in the days ahead.
For third-quarter 2023, Block generated total revenues of $5.62 billion, reflecting an increase of 24.4% year over year.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at 5.63 billion, indicating 21.1% year-over-year growth.
For the fourth quarter of 2023, Block expects gross profit between $1.96 billion and $1.98 billion, suggesting year-over-year growth between 18% and 19%.
Image: Shutterstock
Block (SQ) Boosts E-commerce Reach With Afterpay-Rokt Deal
Block’s (SQ - Free Report) “Buy Now, Pay Later” (BNPL) platform, Afterpay, partnered with the e-commerce technology company Rokt in a bid to boost the online shopping experience for customers.
Notably, this partnership will enable Afterpay and its retail partners to provide relevant advertising experiences to targeted customers during the checkout process using Rokt's e-commerce solution.
Further, it will allow the provision of highly relevant checkout offers, enhancing customer lifetime value.
The company is expected to gain solid traction across e-commerce shoppers on the back of its latest move.
Block, Inc. Price and Consensus
Block, Inc. price-consensus-chart | Block, Inc. Quote
Growth Prospects
The latest move positions the company well to strengthen its position in the global e-commerce space.
Per a Mordor Intelligence report, the global e-commerce market size is expected to reach $16.24 trillion by 2028, exhibiting a CAGR of 15.8% between 2023 and 2028.
A Grand View Research report indicates that the global e-commerce market will witness a CAGR of 15% during the forecast period of 2023-2030.
Solidifying prospects in this promising market is expected to instill investor optimism in the stock.
However, product development expenses, increasing competitive scenarios and foreign exchange headwinds continue to remain concerns.
Notably, Block has lost 10.4% in the year-to-date period, underperforming the industry’s rally of 32.1%.
Afterpay’s Collaborative Movements
The latest move is in sync with Block’s deepening focus to strengthen its Afterpay platform through collaborative movements.
This apart, Afterpay recently partnered with Rite Aid to provide a flexible payment option for household necessities like health and beauty, baby care and groceries at over 2,000 locations nationwide.
Further, it collaborated with top retailers like Boden, Fresh, LuluandGeorgia, Quince, Swarovski and Wolverine Worldwide to enable online shopping and payment over time.
Also, Afterpay partnered with Nift Networks to launch an exclusive rewards program, offering customers the chance to discover and try new products and services.
We believe that all the above-mentioned endeavors will likely strengthen Afterpay’s growth trajectory, which will likely contribute to the overall financial performance of Block in the days ahead.
For third-quarter 2023, Block generated total revenues of $5.62 billion, reflecting an increase of 24.4% year over year.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at 5.63 billion, indicating 21.1% year-over-year growth.
For the fourth quarter of 2023, Block expects gross profit between $1.96 billion and $1.98 billion, suggesting year-over-year growth between 18% and 19%.
Zacks Rank and Other Stocks to Consider
Currently, Block carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader business services sector are Steelcase (SCS - Free Report) , AppLovin (APP - Free Report) , and APi Group (APG - Free Report) . While Steelcase sports a Zacks Rank #1 (Strong Buy), APi Group and AppLovin carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steelcase shares have gained 67.6% in the year-to-date period. SCS’ long-term earnings growth rate is currently projected at 10%.
AppLovin shares have gained 269.7% in the year-to-date period. APP’s long-term earnings growth rate is currently projected at 20%.
APi Group shares have gained 55% in the year-to-date period. APG’s long-term earnings growth rate is currently projected at 18.27%.