Jack Dorsey’s Block Inc. continues to attract positives after posting huge numbers in previous quarters. A new Barclays report suggests the company could be added to the S&P 500 benchmark index due to its financials.
Led by former Twitter CEO Jack Dorsey, the financial services firm has marked significant year-on-year inflows with surging stock prices. In the last six months, SQ is up 36.62% amid a flip in market conditions.
Barclays Tips Block For S&P 500
The S&P’s next quarterly rebalance is slated for June 7 with Barclays, with Barclays analysts tipping the firm for a possible inclusion. According to the report, the firm meets the eligibility criteria following the release of its Q4 2024 earnings. A look at the report shows a net income surge to $178 million amongst other positives.
“SQ reached S&P 500 eligibility following 4Q23 earnings in February 2024 as (a) Q4 had positive net income of $178M and (b) the sum of net income over the LTM ending 4Q23 was also positive at ~$125M.”
Although the inclusion is not guaranteed, Block stands a higher chance due to its designation as a financial services firm. Analysts at Barclays opine that sector underweighting could play a role in rebalancing.
“We estimate Financial Services is the second most underweight industry category represented in the S&P 500 index currently (Software & Services being the most under-represented),” they added.
Firm Records Market Surge
Crypto stocks notched a strong performance in the first three months of the year after the approval of spot Bitcoin ETFs by the Securities and Exchange Commission. Subsequently, the price of Bitcoin soared to a new all-time high above $72,000.
This saw an increase in firms that offer Bitcoin-related services. Block’s financial earnings in Q1 topped projections by market analysts as net revenue hit $5.96 billion.
Also Read: Arbitrum Stylus Floats Giga Update, Is ARB Price Surge Imminent?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
