Mike

65% $XYZ
30% $TSLA
5% $LMND

[Bob's Payment Stock Substack @bobspaysubstack]

Block $XYZ 'Conglomerate Discount' Update

EV-to-2026 Gross Profit:
$XYZ 4.0x
$CHYM 5.4x
$TOST 9.5x

2026 GP for $XYZ
Cash App $8.0B (+26%)
Square $4.4B (+12%)
Other $0.1B

If you give Cash App GP a $CHYM multiple, you have $43.2B of EV, leaving $7.3B assigned to Square, implying an EV/GP multiple for Square of 1.7x. That's a huge discount to $TOST (obviously) but it's actually half of $FOUR's multiple (3.4x on EV-to-GRLNF, on GP it would be even higher).

Conversely, if you give Square half of $TOST's multiple (4.75x), it would imply a multiple of 3.7x on Cash App GP, or about a third off $CHYM's.

$XYZ's Cash App GP will grow ~26% in 2026 vs. ~28% for $CHYM

$XYZ's Square GP will grow 12% in 2026 vs. low-DD organic GRLNF growth for $FOUR and ~20% for $TOST (which includes hardware losses as Square's GP does)

Whatever way you slice it, $XYZ trades at large discounts to their most relevant peers.

[Cute Baby @nachunja]

$XYZ
Super informative. Glimpse in to how Designers at Block work with buzz 🐝.

11/10 content

[Block Investor Relations @BlockIR]

Watch this to see what Builderbot can do.

In a live demo hosted by Adam Frisch of Evercore ISI, @camworboys, Head of Product Design at Cash App, and @bradwrage, Senior Product Designer, use our homegrown agentic AI tools to build a real Cash App feature in real time.

The challenge: they didn’t know which feature they’d be building until the audience voted.

Get a look at BuilderBot, Buzz, and Berd in motion, and how they our accelerating development at Block.

[Cute Baby @nachunja]

$XYZ
Great update, much needed.

Feels like it’s 2 years late, but better late than never

[Cute Baby @nachunja]

$XYZ
I feel like I was right about Block. The renewed focus from Jack and the restructuring of the company would improve execution and reinvigorate both top and bottom line growth.

Where I was wrong was assuming that better execution and fundamentals would directly translate into a higher stock price in an environment where there’s the “AI trade” and then there’s “everything else.” Naive at best, kinda dumb at worst.

I'm of the belief Block should def be in the "AI" bucket, but market doesn't seem to think so.

I thought Block was cheap few years ago. Today, with the valuation where it is and the fundamentals improving, I think it’s cheaper than ever.

But as they saying goes, it's-cheap-for-a-reason, I suppose.

There's just aren't any catalyst to look forward to and there's landmines everyday with inflation numbers, rates, war, oil prices, bitcoin uncertainty, etc.

It's not bad enough to warrant a sell. Not at all. But whether to add more here or just chill until the next earnings is a close call.

[Adam Spring @positivelyforth]

Tiger Global, ARK Invest, Third Point and Point72 are as good as it gets in terms of blue chip hedge fund buyers of @blocks Hope to see more names enter the ring and take meaningful positions @BlockIR $XYZ

[jack @jack]

https://t.co/C3yp4LNncc

[Cute Baby @nachunja]

$XYZ
• Tiger Global reduced its top holdings
• But added 14% to Block

[Cute Baby @nachunja]

$XYZ
David Meyer's $6B Contour Asset Management makes Block its #1 position at 15%

[Dr J Rould @jrouldz]

I have finally pulled the plug on the $XYZ bag hold

locked +100% gains, but at massive opportunity cost, considering ~9 years holding

Because I am seeing signs of market froth, I'm parking most of the proceeds in my dividend portfolio for safekeeping

I really tried @jack 🤷‍♂️

[Dr J Rould @jrouldz]

$XYZ is my baggiest bag-hold of all time

Been here far longer than I care to admit

I'm going to give it one more chance to break the $90 price wall. If it fails again, I will bag-hold no more. Pressure's on for earnings later, Jack 😆

[Cute Baby @nachunja]

$XYZ
Some have brought up why Primary Banking Active numbers were down in Q2.

It's always down sequentially in Q2.

Seasonality.

It's trending the right way.

[Jevgenijs Kazanins @jevgenijs]

Amrita Ahuja, Block’s $XYZ Q2 2026 earnings call: “For Square, we'd expect to accelerate gross profit growth in the back half of this year, and that's on the back of both strong GPV growth as we compound the benefits of not only stronger product velocity, but also our ramping distribution channels. Also on the back of expanding our pricing and packaging initiatives that we rolled out towards the end of last year.”

[Cute Baby @nachunja]

Amrita, first question is on the stock.

Block has consistently delivered financial results above Street expectations and above its own guidance. Execution has clearly improved. Yet the stock has effectively gone nowhere over 8 years.

As CFO, you speak regularly with major buyside investors. What do you think they are still missing about Block? Or, alternatively, what do you think Block itself has not yet done well enough to earn a sustained rerating?

@jack has emphasized that the answer is to keep building great products and results will follow. But Block has been executing and delivering better products, while the valuation has remained stubbornly compressed. Beyond simply continuing to execute, what can management do to close that gap?

Second question is on buybacks.

How do you think about the appropriate pace and magnitude of share repurchases?

The pace has increased recently, but given the current valuation, improving free cash flow, and management's apparent confidence in the business, why not be significantly more aggressive with buybacks today?

[cam worboys @camworboys]

This isn’t very far away.

It’s where most of my energy is going right now.

A fully generative interface, powered by our intelligence.

[SamLResearch @SamLResearch]

$XYZ the problem with the latest Block Inc. earnings call was that there was no wide scale rollout or revenue guidance for Neighborhoods on the impact on Cash App and the Square ecosystems, as well as ETA for Proto’s scaling.

Same goes with Cash App Mobile in terms of how it is doing and whether there has been meaningful signups with the recent rollout of it. Wall Street cares the most about forward guidance in regards to Block’s stagnation. We need this type of forward-looking guidance to uplift hopes and for Wall Street to invest heavily.

There is so much potential here @jack @TempletonThomas @owenbjennings @milessuter @camworboys @BlockWhaleXYZ @nachunja

[Paper Bag Investor @PaperBagInvest]

New Interview with $LMND CEO @daschreiber and (soon-to-be) CFO Nick Stead. We cover OpEx and SBC in great detail as well as other pressing investor questions. 🍋
https://t.co/PKr7AWESVR

[OBJ @owenbjennings]

strong q2 from the team!

key for me was the SQUARE side; clear our f&b focus has paid off and we’re back on offense: US F&B GPV growth running the hottest it has since Q123 + overall US GPV has doubled since Q324.

now, MORE WORK TO DO!!

can’t wait for everyone to experience neighborhoods, phone plans, managerbot, sq credit card, apcac, buzz, tags, and so much more

onward - - - >

[matt ross @emcross23]

In the past ~2.5 years:

Square GPV growth re-accelerated as we reignited product velocity and completely reinvigorated our go to market strategy. Our core self onboard new volume added growth is the strongest it's been since 2021, and we’re doing that while scaling sales and ISOs.

Cash App network growth resumed and we launched/scaled an insane array of products for our customers: Borrow, Afterpay Post Purchase, Afterpay Pre Purchase, Cash App Tags, Cash App Mobile, Bitcoin Map, Cash App Green, and many more.

We’ve started to connect our ecosystems more meaningfully than ever before and found product market fit with Neighborhoods. Activity is scaling across every meaningful metric we track, delivering differentiated value to sellers and consumers.

We launched Proto (and bitkey just before this timeframe), an emerging ecosystem that has leaned on our world class hardware talent to build a future growth driver for Block.

We’ve expanded margins ~10 points depending on when you start the clock, doing all of the above with high quality and efficiency.

We did ALL OF THAT as we fully transformed how we work and reduced the size of our team to move faster. We've become an ELITE applied AI company. We’ve launched numerous industry firsts including an enterprise grade agentic harness (goose) and a (frankly incredible) agentic collaboration platform Buzz, where agents are first class participants. We shipped Managerbot and Moneybot into Square and Cash App on the same agent substrate, beginning the journey of delivering AI capabilities to our customers.

The scale of transformation over the past few years is incredible. You see it in our results and guidance this quarter: gross profit, Adjusted Operating Income, and Adjusted EPS all ahead of our guidance in Q2. For 2026 we increased our guidance across the board, now expecting 21% gross profit growth and 70% Adjusted Diluted EPS growth. 7-0 percent Adjusted Diluted EPS growth.

And we’re not done. High quality, high velocity, customers. That’s it. Back at it today.