Block Inc (NYSE: SQ) is a great pick for investors that wish to play the crypto space but are too scared of directly buying the cryptocurrencies, says a Mizuho analyst.
Dolev’s bull case for Block Inc stock
The stock has been rather painful for its shareholders, now down more than 60% year-to-date. Explaining why he still remains bullish on it, Dan Dolev said on CNBC’s “Fast Money”:
Block Inc is a very interesting singularity here because only about less than 5.0% of its gross profit is tied to Bitcoin. But the overall aura of [Block]; celebrity of a CEO and the focus on Bitcoin makes it bigger than it is.
In early May, the San Francisco-based fintech reported better-than-expected earnings for its fiscal Q1. Revenue, however, came in shy of Street estimates.
Block Inc boasts strong fundamentals
According to the Mizuho Senior Analyst, the NYSE-listed Block Inc (formerly known as “Square”) is a smart pick for its strong “fundamentals” that are not related to Bitcoin per se. He noted:
Bitcoin movement doesn’t move the fundamentals but it moves the stock. So, if you’re bullish on Bitcoin, if you’re bullish on crypto, it’s a way to hedge yourself and say hey, it might work or might not, but the fundamentals are strong either way.
His remarks follow a statement from CEO Jack Dorsey that Block Inc was no longer just a payments company. Wall Street, on average, sees a close to 120% upside in the stock from here.
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