Block’s quarter was defined by one concrete step into crypto infrastructure as it applied for a federal trust charter to launch Builders Bank & Trust for institutional bitcoin and stablecoin custody. For Block shareholders, the return from the start of the year was 21.3%, including dividends. If you were weighing a purchase back on 1 January, what did you need to believe about AI, lending risks and crypto exposure before any of this later news arrived?
Block is not the only name tied to this theme. Zero in on 18 cryptocurrency and blockchain stocks and compare how each one is priced.
The Argument You Would Have Been Weighing Up On Block
The shares cost US$65.09 at the start of the period, and the debate around Block focused on how far its core products, lending push and crypto features could carry earnings through the next few years.
The bull narrative pointed to a Fair Value of US$87.17, a price implied by assumptions that revenue would expand 11.3% a year and margins would settle near 7.4%, with Cash App, Square and embedded banking products driving higher fee income.
The bear case anchored to a Fair Value of US$55.42, with investors focused on revenue rising only 5.9% a year and profitability slipping toward a 6.6% margin as regulation, cyber risks and dependence on Bitcoin trading added cost and volatility.
What The Results Changed For The Block Argument
Block’s Q2 2026 update showed revenue at US$6.62b versus US$6.05b a year earlier, which lined up more cleanly with the bull case that assumed durable top line momentum from Cash App, Square and lending. The hit came in profitability. Net income was US$88.52m versus US$538.46m and net margin moved from 8.9% to 1.3%, which left the margin part of the optimistic story unproven. Overall, the evidence cut both ways.
The useful takeaway for any stock built on a “profitable growth” story is simple: treat revenue forecasts and margin assumptions as separate bets, then test both against each set of results by tracking reported net income and net margin, not just sales.
What Block’s 21% Run Leaves You Paying For Today
Block now trades at US$79.02 from the start of the year, with this Narrative’s Fair Value sitting above the current price. The focus has shifted to how its AI native operating model, Cash App banking features and lending engine reshape earnings quality.
At today’s quote you are judging whether the market fully credits deeper Square and Cash App integration, including regulated banking infrastructure, as a durable profit source rather than a one off story.
"A key consideration is ongoing execution on AI driven productivity and the integration of Square, Cash App, and financial infrastructure such as Square Financial Services and Builders Bank & Trust, while managing credit, fraud, and regulatory risks."
One Narrative has put a figure on that disagreement. → See the Narrative with its higher Fair Value, assumptions and all
Before The Next Story Makes Headlines
By the time a rally makes headlines, you are reading about returns someone else has already earned. Why not go straight to the source and look for your own contrarian opportunity? These three companies trade below our estimated value.
- Company 1 - 39% below our estimate - turns lidar pilots into scaled automotive programs with high-volume sensor shipments.
- Company 2 - 41% below our estimate - rides shifting trade incentives that channel pre-owned electronics into its refurbishing operations.
- Company 3 - 28% below our estimate - supplies utility test solutions and components as power networks adapt to rising electrification.
Those are three of them. See every one of the 30 undervalued companies on it →
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