Block drowns by 20 % with App Miss Miss Cash reduced discounts

roadblock The stocks were on the right path for their second day on Friday, as more than 20 % decreased with investors digesting a A brutal quarterly report A wave of analyzes focused on one case: Critical application.

In the first quarter, Miss Wall Street won, which prompted many companies-including Wales Vargo, the sea port, and BMO and Benchmark- to reduce shares overnight. Many new concerns have been marked about the growth of the stagnant monetary application, silent demand for the consumer and a soft macro environment that may affect the liquefaction.

“The recession in the number of active users of the application is more important than low spending on users for users,” and the standard was written in its note, as the classification block has been reduced.

The Financial Services Company was absent in all fields-revenues, the total profit size and the size of payment-and reduced its guidance for the whole year, noting the uncertainty in the macro, the weakest consumer spending, and the low flows expected during the strong tax recovery season.

“I don’t think we were focusing enough and we had enough attention on the network and the intensity of the network, and this is our basis,” the CEO Jack Dorsi He said in the profit call. “Of course, we want to deepen participation with our customers through banking services and borrowing, and I have no doubt that we will do … But at the same time, we need to make sure that we are constantly growing our network, and this begins with peers.”

App Cash achieved $ 1.38 billion in total profits in the first quarter, an increase of 10 % over the previous year, but shy of the consensus of the street of $ 1.42 billion. The monthly weapon remained flat at 57 million-and the flows increased by only 8 %, although new features such as Afterpay on the monetary card and the broader efforts to apply the monetary application as a full banking alternative.

Wells Vargo summoned “many red flags in the application of monetary applications”, while the sea port referred to several consecutive quarters of the negative GPV growth. Even Morgan Stanley, who repeated the weight gain classification, was launched on the Miss Miss “Surprise” monetary application-although he highlighted better momentum than expected in the work of the square seller, especially in international markets.

BMO has reduced stock classification for market performance. Wales Vargo He said that he was unwilling to “lying to the second half of Mary,” by moving to equal weight. The sea port has been reduced to a neutral, and wrote: “Will Jack Dorsy stand?”

However, some have maintained optimism, with Bank of America Repeated his purchase classification, and he called shares with less than their value, and Morgan Stanley He said it was an attractive entry point in the short term.

The Block turning plan depends on lending. The company says that the borrowing of the monetary application-which is now approved by the insurance company on federal deposits to create loans through its affiliated with the bank-will double the number of qualified users and improve margins by providing service at home.

Marketing spending is also expected to jump 50 % in the Q2 as Block looks at the growth reaction in the back half of the year.

“We are not sure enough of the possibility of such a bounce of the recommendation to buy shares on weakness.”

Meanwhile, the Venmo competitor displays momentum.

The mother company PayPal A 20 % revenue leap for the application was mentioned in the first quarter, driven by an increase Venmo discount cardInstant transfers and increasing size when going out. Although Paypal did not reveal a flour revenue number for Venmo, he said that a user liquidation is improved-as a result of a clear payment to include Venmo deeper into e-commerce flows.

Two strategies are completely different now: App Cash tends to be deeper into lending and banking services, while Venmo is chasing spending when going out. But the goal is the same: having a consumer portfolio.

Currently, Venmo appears to be gaining ground, while cash applications are reassembled.