Block: Lowering Long-Term Margin Assumptions

Block is a fast-growing, highly scalable business, which creates a wide range of future possibilities. This consideration is the primary factor behind our Very High uncertainty rating. After reassessing our assumptions in light of the company's recent performance, we think it is appropriate to lower our long-term margin assumptions given the lack of improvement in profitability. As a result, we are reducing our fair value estimate for Block to $83 per share from $98. We will maintain our narrow moat rating.