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Block Inc To Hit 'Rule Of 40' By 2026 Despite $70 Million Party, Says JPMorgan

1. JPMorgan analyst reaffirms Overweight rating for Block with $100 target. 2. Cash App's gross profit surged 24% year-over-year, driving user growth. 3. Square's performance slowed, but overall ecosystem momentum remains positive. 4. A $70 million company event impacted profitability but prospects are improving. 5. Analysts believe Block can achieve profitability by 2026 with current trends.

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FAQ

Why Bullish?

While facing short-term profitability challenges, Block's underlying metrics, especially Cash App, signal long-term potential, reminiscent of past recoveries in tech stocks after transitional phases.

How important is it?

The article highlights significant growth metrics and a favorable outlook, influencing investor sentiment and potential market performance.

Why Long Term?

Block's forecasted recovery and growth strategy could unfold over several quarters, drawing parallels to similar tech recoveries like that of Square itself over its early years.

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