Asia FX moves little with focus on US-China trade, dollar steadies ahead of CPI
Investing.com-- Block Inc (NYSE:XYZ) shares fell sharply in Australian trade on Monday, tracking declines in their U.S. peers after the payments firm clocked weaker-than-expected fourth-quarter earnings.
Block’s 2025 guidance also largely failed to impress, sparking a steep decline in its U.S. shares on Friday.
This spilled over into Australian trade on Monday, with shares (ASX:XYZ) sliding as much as 13% to A$108.09 in Sydney trade. Broader Australian markets were flat, with the ASX 200 trading sideways.
Block’s earnings per share for the December quarter were 71 cents, less than street estimates of 87 cents. Revenue of $6.03 billion also came in below expectations of $6.29 billion.
Profit growth in Block’s Cash App business- its main revenue earner- fell to 16% in Q4 from 25% a year earlier. The company is grappling with heavy competition in the digital payments space, amid an increased push into the sector from tech giants including Apple (NASDAQ:AAPL) and Google (NASDAQ:GOOGL).
Block is also facing a decline in consumer spending, amid concerns over slowing economic growth, high inflation, and policy uncertainty over U.S. President Donald Trump’s trade policies.
Block’s push into the Buy now pay later sector is expected to drive the company’s next leg of growth, especially after it acquired Australia’s Afterpay in 2022.