By Manya Saini. (Reuters) - Jack Dorsey-led Block Inc's first-quarter results will likely see investors zoom in on the payments firm's Cash App, which has been expanding its reach beyond just peer-to-peer money transfers. The app's investing feature has been gaining traction, and with the company reporting better-than-expected earnings, it's clear that it's catching on with users.
Shares of Block Inc (NYSE:SQ) are up over 4% in premarket Friday after the fintech company reported better-than-expected Q1 results. The company's revenue rose to $5.06 billion, up 266% YoY, beating estimates by $1.19 billion. Earnings per share came in at $0.41, compared to the expected $0.16.
Block, the payment-transfer company that's expanding into bitcoin mining and music, beat analysts' estimates for Q1 results as its Cash App continued to grow in popularity. The app has been expanding its features, including investing, which has been gaining traction among young investors.
For its sheer power-to-weight ratio, Cash App is a powerful app, with banking, spending, and investing all jammed into a svelte and user-friendly interface. The app's investing feature, which allows users to buy fractional shares of stocks, has been a hit with millennials who are looking to get into the stock market without having to shell out large sums of money.
Fintech firm Block, owned by Twitter founder Jack Dorsey, has reported a staggering $2.16 billion in Bitcoin (BTC) revenue on its bellwether Cash App in Q1 of 2021. The company's CEO said that the app's bitcoin revenue was up 11 times compared to the previous year. The company's total bitcoin revenue for the year was $4.57 billion.
Cash App is one of the newest digital payment options that enable quick money transfers. With convenient features beyond just sending and receiving money, the app has gained popularity among young users. The app's investing feature is particularly popular, with users able to buy fractional shares of stocks for as little as $1.
Square stock bulls focus on its Cash App and Afterpay synergies, but SQ stock bears worry over Bitcoin and a possible recession. Square's stock has been volatile, with the company's bitcoin holdings being a major factor in its price movements. However, the company's Cash App has been a bright spot, with the app's investing feature gaining popularity among young investors.
A short-seller attacks the Block. Fresh off its nation-rattling takedown of India's most powerful corporation, Hindenburg Research released a scathing report on Block, alleging that the company's Cash App was facilitating illicit activities. The report sent Block's stock tumbling, but the company has denied the allegations and has stated that it is committed to complying with all laws and regulations.
