Rich Peter
Investor, Crypto, US Stocks & High-Dividend ETFs
Block is a midline bottom-fishing opportunity as it shifts from a payment tool to an AI-powered financial ecosystem. After more than four years of basing, the stock decisively broke above its 200-week moving average, and a breakout from the range could send it sharply higher. Strong 2026 guidance, consensus Buy ratings and expanding margins support it, with the current $65 area offering a margin of safety ahead of May 7 earnings. x.comÂ
Block could benefit from lower funding costs if its credit rating is upgraded. Bloomberg Intelligence ranks its bonds first by market value among high-BB upgrade candidates; unlike businesses facing rising capital costs, an upgrade would move Block in the opposite direction. x.comÂ
Block's weekly chart shows bullish momentum, with a clear sequence of higher highs and higher lows supported by steady whale accumulation. Momentum stays intact while price closes above $80.7, the level of the longest momentum bar; a close below it would signal lost momentum. x.comÂ
Block's problems trace to CEO Jack Dorsey, who should not be running the business. Per CoinDesk, Dorsey says the 4,000 job cuts were a permanent restructuring to replace middle management with AI, not cost reduction. That looks like AI-washing, and if Block really had anywhere near 4,000 middle managers among about 10,000 full-time staff at end-2025, it is a huge red flag. Dorsey is to blame for the over-hiring, the layoffs and the mess, and remains destructive to shareholder value. x.com x.comÂ
Category leaders such as Atlassian and Block are showing real strength and resilience in the face of AI. When a company is foundational to its category, disruption often creates more value for the leaders rather than less. x.comÂ
Grab is building an ecosystem around Southeast Asian consumers' everyday needs, so each customer grows more valuable as they use more services. Q2 monthly transacting users rose 17% to 53.9M, revenue rose 22% to $997M and adjusted EBITDA rose 54% to $168M, while the loan book nearly tripled to $2.3B. The share price has been flat for years despite this. If users, engagement and financial services keep growing, the next 5-10 years could be extraordinary; competition is the main risk. x.comÂ
Seven quality stocks sit near the bottom of their ranges with nothing actually wrong, forgotten while money piles into AI, semiconductor and memory names. S&P Global is down 19% YTD at its cheapest in five years though revenue nearly doubled. Mastercard grows earnings in the high teens at the bottom of its range, Netflix is 42% off its peak while still growing, and Microsoft, Meta and Uber are 26-31% off highs. Reddit, with 4.4B monthly visitors, is underestimated. Buy while boring and wait. … Show more
