Block (NYSE:SQ) shares are advancing 22% after several analysts reiterate their Buy ratings for the fintech and crypto company after its Q4 earnings easily beat Wall Street expectations. PayPal's (PYPL +1.5%) weaker-than-expected Q4 earnings, resulting from a pullback in spending by lower-income consumers, lowered the bar considerably for Block (SQ), BTIG analyst Mark Palmer wrote in a note to clients. "As such, SQ was well-positioned to deliver a positive surprise, which is what it did," he said. Block's (SQ) Cash App business's Q4 gross profit of $518M topped the consensus of $502M, Palmer said, putting to rest concerns that reduced spending by lower income consumers at PayPal (NASDAQ:PYPL) would also hurt Block. Truist analyst Andrew Jeffrey called Cash App "the future of consumer banking, driving increased inflows" and improving monetization. In addition, adding new offerings, such as Buy Now Pay Later through its Afterpay acquisition, should boost average revenue per user,
North Carolina Eyes Crypto for Pension Funds
