BofA Reduces Block, Inc. (XYZ) Valuation Following Peer Weakness

Finviz2026/03/02 16:27

By:Finviz

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Block, Inc. (NYSE:XYZ) is among the 13 Best Big Tech Stocks to Buy According to Hedge Funds.

BofA Reduces Block, Inc. (XYZ) Valuation Following Peer Weakness image 0

Block, Inc. (NYSE:XYZ) is one of the best technology stocks on our list.

TheFly reported on February 24 that Bank of America reduced its price target for XYZ to $75 from $86 while keeping a Buy rating. The adjustment reflects a lower multiple applied to the company’s 2027 earnings estimate, which is driven by softer investor sentiment for payment stocks and weaker valuation levels among peers.

Additionally, Block, Inc. (NYSE:XYZ) released a forecast for 2026 along with its fourth-quarter and full-year 2025 results on February 26. It forecasted adjusted operating income of $3.2 billion with a 26% margin, up 54% from the previous year, and full-year gross profit of $12.2 billion, reflecting 18% growth year over year. The first quarter of 2026 is predicted to see a 22% growth in gross profit to $2.8 billion and a 21% margin in adjusted operating income to $600 million, indicating sustained high performance and operational efficiency into the new year.

Block, Inc. (NYSE:XYZ) offers financial and payment solutions for businesses and individuals, including point-of-sale systems, digital payments, and Cash App services, empowering commerce, peer-to-peer transactions, and financial inclusion globally.

While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the

best short-term AI stock

READ NEXT: 14 Best GARP Stocks to Buy According to Analysts

and 14 Best Affordable Dividend Stocks to Buy According to Analysts
.

Disclosure: None. Follow Insider Monkey on Google News.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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1. Markets diverged during the week. Between the October 23 and October 30 closes, BTC fell 4.78%, the Nasdaq 100 declined 1.98%, and gold and silver dropped 2.72% and 8.59%, respectively. The DAX, KOSPI, Nikkei 225 and Hang Seng advanced. We focus on differences in growth prospects, valuation sensitivity and risk exposures rather than applying a single directional view across assets. 2. Market reactions to Alphabet's and Intel's earnings brought returns on AI investment into focus. Attention is shifting from the scale of capital expenditure to revenue realization, margins and free cash flow. Lower interest rates can ease discount-rate pressure, but a sustained valuation recovery still requires support from both operating performance and financing conditions. 3. The November 3 US midterm elections and November 6 employment report are key events in the coming week. We monitor how post-election fiscal and legislative agendas may affect interest rates, the dollar and industry operating conditions. Our execution priorities are to manage leverage and concentration, retain margin and exit-liquidity buffers, and avoid treating a single political outcome as an automatic trading signal. 4. Following Binance's disclosure of a security incident, industry attention to endpoint protection, access segregation and coordinated incident response has increased. Key assets to monitor: BTC, the Nasdaq 100, crude oil and gold, alongside upcoming earnings from AAPL, AMD, PLTR, ARM, ANET and QCOM.

Bitget•2026/11/02 08:28