Block immersed by 20%when the Miss Triggers Cash app drops

Block Stocks were on the way to their second worse day on Friday, plunging over 20%when investors were digested a Hard quarterly report And a wave of analysts decreases on one issue: Cash applications.

Profit in the first quarter Miss is broken by Wall Street, causing several firms, including Wells Fargo, Seaport, BMO and Benchmark-Rise Shares for the Night. Many indicate fresh problems around the growth of stagnant cash, muted consumer demand and soft macro -yas, which can weigh monetization.

“Stagnation in the number of active users of the application is even more concerned with the reduced costs of users,” Benchmark wrote in his note, lowering the block that needs to be contained.

The financial services company missed the proceeds, gross income and volume of payment, and reduced its full-fledged recommendations, citing macro-notice, weaker consumer expenses and influx with less than expected during the fact that is usually a strong tax return season.

“I just don’t think Jack Dorsi said about a call about income. “Of course, we want to deepen the interaction with our customers through bank services and borrow, and I have no doubt that we will … But at the same time we need to make sure that we are constantly growing our network, and it starts with peers.”

The available app has brought $ 1.38 billion in the first quarter, which is 10% more than a year earlier, but it is ashamed of $ 1.42 billion. Monthly assets remained equal by 57 million-only 8%increased, despite new features such as cash map and more extensive efforts to place applications as a full-fledged bank alternative.

Wells Fargo called for “numerous monetization of available” red flags “applications, while SEAPORT showed a few consecutive GPV growth quarters. Even Morgan Stanley, who repeated his overweight rating, named Miss” Driving “, though he emphasized that the impulse was better than Markets.

BMO downgraded the stock to market work. Wells Fargo He said he did not want to “put Mary in the second half”, moving to a flat weight. Seaport has dropped to neutral, writing, “Will the real Jack Dorsi, please?”

And yet some supported optimism, with Bank of America repeating the purchase rating by calling the stock undervalued and Morgan Stanley Saying it was an attractive closest entry point.

The turn plan of the block depends on lending. The company states that the CASH App Borront-Tuper is approved by FDIC to come from loans through its subsidiary, the number of users who are eligible and improve margins by serving your own home.

Marketing expenses are expected to jump at 50% in Q2 if the block looks to realize growth in the posterior half of the year.

“We are not confident enough to recommend to buy shares for weakness,” Benchmark wrote.

Meanwhile, the Hungarian competitor shows signs of momentum.

Mother’s Company Enhancement reported a 20% revenue jump for app in 1 quarter caused by increasing acceptance Debit Map of the HungarianInstant gear and increases the volume when registration of the box office. While PayPal did not disclose the exact income figure for Venmo, he said monetization per user improves-a clear press to the built-in Venmo into the depth of e-commerce flows.

Two very different strategies are currently unfolding: the cash application is leaning deeper in lending and banking, while Venmo pursues the costs. But the goal, however, is the same: possession of the consumer’s wallet.

Now Venmo seems to be gaining position and the available applications are overloaded.