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Block shares drop as spending slowdown puts BNPL expansion in focus

Block Inc., the parent company of Square and Cash App, experienced a significant drop in its share value after reporting a slowdown in spending growth, which has put its expansion plans for its buy now, pay later (BNPL) service under scrutiny. The company's shares fell as much as 15% in after-hours trading following the announcement. Despite this, Block's CEO Jack Dorsey highlighted that the company is focusing on profitability and sustainable growth, aiming to expand its BNPL offerings more cautiously. The report indicated that while gross profit increased by 22% to $1.66 billion in the fourth quarter, the growth rate was lower than in previous periods. This has led investors to question the scalability and future profitability of Block's BNPL strategy amidst a cooling economic environment where consumer spending is not as robust.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/block-shares-drop-spending-slowdown-puts-bnpl-expansion-focus-2025-02-21/ ]