Block rated 'Buy' after 25% drop, poised to benefit from AI and digital banking shift.

Block, Inc. has received a 'Buy' rating following a 25% decline from its 2025 highs, signaling a strong entry point for investors. The company is expected to benefit from emerging AI trends and a significant cost-cutting effort, including layoffs of nearly half its workforce. Its Cash App now accounts for 61% of fiscal year 2025 gross profit, reflecting a successful pivot to digital neobanking. Attractive cash back and high-interest offers for premium users are driving increased usage of Cash App debit cards, supporting profit growth despite a volatile 2026 stock market.