Why Block, Inc. (XYZ) Crashed on Friday

We recently compiled a list of the 10 Stocks Record Biggest Double-Digit Drop on Friday. In this article, we are going to take a look at where Block, Inc. (NYSE:XYZ) stands against the other stocks.

The stock market ended the trading week in a bloodbath, with major indices registering losses amid concerns over a slowing economy and sticky inflation.

The Dow Jones fell by 1.69 percent, the S&P declined by 1.71 percent, while the tech-heavy Nasdaq nosedived by 2.20 percent.

Ten stocks mirrored a broader market decline, posting double-digit losses, with sentiment for most of the companies dampened by dismal earnings performance.

To come up with Friday’s biggest losers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A financial advisor speaking to a customer, illustrating the wealth management services.

Block, Inc. (NYSE:XYZ)

Block, Inc. (NYSE:XYZ) fell for a third straight day on Friday, losing 17.69 percent to end at $68.35 apiece as investor sentiment was dampened by economic uncertainties that could potentially impact the company’s growth.

Investors’ focus was on the company’s “buy now, pay later” (BNPL) lending program’s ability to drive profits, especially as consumer spending growth remained at a slow pace over the past few weeks amid uncertainties brought about by President Donald Trump’s trade policies that could jack up consumer prices.

Block, Inc. (NYSE:XYZ)’s Cash App business, which enables peer-to-peer mobile payments, saw gross profit grow by only 16 percent during the holiday quarter, slower than the 25 percent a year earlier.

According to an analyst from Morningstar, the long-term economics of Block, Inc. (NYSE:XYZ)’s Cash App remains the biggest point of uncertainty and its growth trajectory remains in question.

Overall XYZ ranks 5th on our list of Friday’s biggest losers. 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 doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as XYZ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock

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