SQ Stock Alert: Block Rises on a Big CashApp Boost

Digital payments facilitator Block (NYSE:SQ) is having an amazing day. The company released its third-quarter 2022 financial results yesterday. And while Block is comprised of two segments, Square and Cash App, it’s mainly the Cash App-related results that are propelling SQ stock higher.

Block, like practically every other U.S. tech business, has had to contend with high inflation. It’s fair to say that Block, as a payments business, was particularly vulnerable as elevated inflation meant that people would dial back their spending.

Yet, somehow Block defeated the inflation monster in Q3. Apparently, the users flocked to the Cash App, as this segment posted $774 million in quarterly gross profit, up 51% year-over-year (YOY).

This isn’t to suggest that Block’s point-of-sale business, Square, didn’t benefit Block in the third quarter. As it turned out, gross profit from Square increased 29% YOY to $783 million.