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Oppenheimer Raises Block, Inc. (XYZ) Price Target to $89 from $85

Block, Inc. (NYSE:XYZ) is among the 11 Best Low Priced Growth Stocks to Buy Right Now.

On February 27, Oppenheimer raised its price target on Block, Inc. (NYSE:XYZ) to $89 from $85 and maintained an Outperform rating following a strong Q4 and constructive 2026 outlook. The firm emphasized a significant organizational restructuring, including a workforce reduction of more than 40%, aimed at operating with leaner, highly skilled teams and accelerating AI-driven automation. These actions are expected to support earnings targets for 2026 that exceed current consensus estimates. Cash App engagement strengthened in Q4, with 1 million incremental monthly transacting actives added, following 1 million additions in Q3.

Block, Inc. (NYSE:XYZ)’s fourth-quarter adjusted EPS was $0.65, with gross profit rising to $2.87 billion, driven by 33% year-over-year growth in the Cash App ecosystem. Gross payment volume reached $66.9 billion, slightly below forecasts, while operating expenses increased to $2.30 billion. Adjusted EBITDA improved to $930 million.

During its third-quarter 2025 earnings call, Block, Inc. (NYSE:XYZ) guided to Q4 2025 gross profit growth exceeding 19% year-over-year, reaching approximately $2.755 billion, alongside adjusted operating income of $560 million and a targeted 20% adjusted operating margin. Management raised full-year expectations accordingly, reflecting sustained profitability expansion.

Block, Inc. (NYSE:XYZ), founded in 2009 by Jack Dorsey and headquartered in Oakland, California, is a financial technology and services provider offering point-of-sale systems, digital payments, and consumer financial products.

While we acknowledge the potential of 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 a 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 12 Best Data Storage Stocks to Buy Right Now and 10 Best Cruise Stocks to Buy Right Now.

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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:

A few years from now, you’ll wish you’d owned this stock.

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