Block Inc Class A
SQ: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$85.00 | Xkrbxxn | Rxvtgzdk |
Cash App Creates Option Value for Block
Business Strategy and Outlook
We think Block’s business model on the merchant side, characterized by efficient client onboarding, innovative point-of-sale devices, flat fees, and an internally developed and integrated set of software solutions, allows the company to reach and retain micro merchants that are unviable for other acquirers. In essence, we believe Square's success has largely come from expanding the acquiring market, as opposed to stealing material share from existing players.