10 Firms Battered by Poor Earnings, Dismal Outlook

1. Block, Inc. (NYSE:XYZ)

Block Inc. nosedived by 20.43 percent on Friday to finish at $46.53 apiece as investor sentiment was dampened by the company’s reduced profit forecast that pushed eight brokerages to lower their price targets on its stock.

In its latest earnings release, Block, Inc. (NYSE:XYZ) said it now projects its profits for full-year 2025 to grow between 12 and 15 percent and second quarter gross profit at $2.45 billion, well below the $2.54 billion as expected by analysts.

The trimmed forecast was due to concerns about consumer spending amid global market uncertainties brought about by President Donald Trump’s tariff policies.

“We are operating in a more dynamic macro environment, so we have reflected a more cautious stance on the macro outlook into our guidance for the rest of the year,” the company said.

In the first quarter of the year, Block, Inc. (NYSE:XYZ) dropped its net income by 60 percent as it registered a $93.4 million remeasurement loss on its Bitcoin holdings.

While we acknowledge the potential of XYZ as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than XYZ but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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