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Block Inc (XYZ) Faces Mixed Outlook with Growth and Challenges

Block Inc (NYSE:XYZ) is one of the best NYSE stocks to buy for the long term. On February 12, Morgan Stanley kept its Equalweight rating and $72 price target on Block Inc. (NYSE:XYZ), noting slower growth in Square’s payment volumes. The firm now expects Q4 2025 Seller GPV growth of 10.3% year‑over‑year, down from 12.7%, with U.S. growth at 7% and international growth at 26%. Square’s gross profit growth is projected at 8%, lower than earlier estimates, due to processor transition impacts that may last until mid‑2025.

For Q4 2025, Morgan Stanley forecasts total gross profit growth of 18.2%, with Square at 8% and Cash App steady at 25%. Looking to 2026, the firm sees gross profit growth of 16.9%, supported by 12% growth in Square and 20% in Cash App, leading to adjusted operating income of $2.7 billion and EPS of $3.19.

On February 4, Block’s Square division launched the second-generation of its Square Register POS system. This new device is 40% faster than the old model, the company said. This improvement is intended to support a quicker checkout process, particularly during high-volume hours.

According to a Bloomberg report on February 7, Block Inc plans to slash up to 10% of its workforce. This plan is part of the company’s effort to operate more efficiently. The company has been on the efficiency drive since 2024, seeking to adjust its business model and staffing.

On January 27, Cantor Fitzgerald initiated coverage of Block stock with an Overweight rating and a price target of $87. In taking this action, the firm pointed to the early success of Block’s turnaround efforts. The firm also cited Block’s new product initiatives as another source of optimism in the stock.

Block Inc (NYSE:XYZ) is an American technology company that provides an array of financial services to merchants and consumers. Through its Square unit, it offers devices and software for checkout counters. It also offers loans and mines Bitcoin.

While we acknowledge the potential of Block Inc (NYSE:XYZ) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XYZ and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 10 Best Medical Technology Stocks to Invest In and 12 Best Foreign Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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