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  5. SQ: Everyone, all three names have been weak for 2 years, + / -. [Block Inc. Class A]
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Q: Everyone, all three names have been weak for 2 years, + / -. When will the group, POS plus other services, see a better stock market for price gains? Clayton
Asked by Clayton on September 29, 2023
5i Research Answer:

Most of the Fintech names are down substantially from highs in 2021, due to a combination of a slowdown in growth, valuation contraction, and some companies with too generous stock-based compensation. In addition, interest rate hikes and economic recession are also headwinds for these high-growth names. We think some of the names mentioned could experience a recovery when interest rates peak. We would not add here, but given the risk/reward is quite attractive, we think TOST and SQ are HOLDs for now. LSPD still has challenges, and has not enjoyed the tech rally this year. It still has lots of cash, but we think buyers can wait. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in SQ.

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