Analyst Suggests Purchasing Block Despite Income Miss

As market heavyweights like Block (SQ) and MicroStrategy (MSTR) release their quarterly profits, fintech businesses are gaining notice. Block’s revenue was $6.16 billion, less than the $6.31 billion that was projected. Nonetheless, the business exceeded forecasts, generating adjusted profits per share of $0.93 as opposed to $0.85. MicroStrategy, on the other hand, missed the $119.3 million sales estimate while reporting $111.4 million in revenue.

Asking for a Trend was joined by Mark Palmer, managing director of Benchmark and senior research analyst of fintech and digital assets, to talk about the future of the fintech industry. Block’s performance was characterized by Palmer as “a better than expected quarter… pretty much across the board.” He cited “solid beats” in other areas but mostly blamed difficulties in the bitcoin space for Block’s revenue deficit.

Palmer said that Block has become “a bottom line story,” showcasing a high degree of operational leverage. Despite the sales shortfall, he encouraged investors to think of Block as a solid investment, pointing to the company’s impressive overall success.

Palmer is still upbeat about cryptocurrencies, especially bitcoin (BTC-USD). The recent halving of bitcoin, according to him, has created “a nice setup for bitcoin’s price going forward.” Palmer’s optimistic attitude toward bitcoin demonstrates his belief in the currency’s ability to further the expansion of the fintech industry.

Palmer and other analysts see intriguing investment prospects in the fintech field as Block continues to capitalize on its strengths and handle the obstacles presented by the cryptocurrency sector.