Block, Inc. (NYSE: SQ), together with its subsidiaries, builds ecosystems focused on commerce and financial products and services in the United States and internationally. It operates through two segments, Square and Cash App. The Square segment offers commerce products for restaurants, appointments, retail, point of sale, online, online checkout, and invoices, as well as virtual terminals, risk and order managers, and payment and commerce application programming interfaces; managed payment services; software solutions; hardware products, such as registers, terminals, stands, and readers for contactless and chips; banking services consisting of lending, instant transfer, and checking and savings accounts; and full-service setup and support services. This segment also provides loyalty, marketing, team management, and payroll services, and gift cards. The Cash App segment offers financial tools within the mobile Cash App, including peer-to-peer payments, bitcoin, and stock investment brokerage; Cash App Card, a debit card; direct deposit, cash boost, and tax preparation services; and Afterpay, a buy now, pay later platform. This segment also provides Pay in 4, monthly payment solutions, advertising and affiliate, shop directory, and Cash App Pay services; and business accounts, and Afterpay and Afterpay Plus cards. In addition, the company operates TIDAL, a platform for musicians and fans; TBD, an open developer platform focused on making the decentralized financial world accessible; Bitkey, a self-custody bitcoin wallet; and Spiral, which focuses on bitcoin open-source work. It serves businesses, sellers, and individuals through e-commerce and retail distribution channels. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in Oakland, California.

Company Overview

• Market Cap: 40.55 billion
• PEG Ratio: 0.69
• Profit Margin: 2.90%
• Return on Equity: 3.50%
• Revenue: 23.5 billion
• Diluted EPS: 1.08

Block’s, formerly known as Square, product suite has evolved from a way for merchants to accept credit cards using their mobile phones into a large-scale financial ecosystem for individuals and small businesses. The company now processes card payments at an annualized rate well over $200 billion, has its own banking subsidiary (Square Financial Services), and a thriving small business lending platform. Plus, it recently entered the buy-now, pay-later lending space with its acquisition of Afterpay.

Two big parts of the company’s business are especially compelling. First is its Cash App, with 49 million active monthly users as of September 2022 and virtually unlimited potential to build out its consumer financial service offerings. The platform already offers direct deposits, debit cards, the ability to buy and sell Bitcoin, and a user-friendly stock trading platform. The second part is Square Online, the version of the company’s merchant platform that helps sellers develop an omnichannel presence, which is a potentially great way for the company to benefit from the surge in e-commerce adoption. Therefore, Block is the best stock to own for long-term investment.