1. XYZ expects a second‐half weighted 2025 turnaround; Q4 guidance remained cautious. 2. Benchmark analyst rates Buy with a $99 target; others offer mixed views. 3. Product catalysts include Cash App Borrow, Afterpay on Cash App Card, and Square innovations. 4. Q4 EPS miss and soft guidance triggered a 17.2% selloff that may be overdone.
Although Q4 results led to an initial selloff due to an EPS miss and soft guidance, multiple analysts (including Benchmark and Outperform ratings) point to promising product catalysts and revenue growth drivers. Historical examples, like Square’s rebound after similar setbacks, support a bullish long-term view.
While the immediate negative reaction has created volatility, the expected long-term benefits from product innovation and strategic investments suggest a moderate to high likelihood of a positive price impact over time.
The growth catalysts such as the expanded Cash App offerings and Square investments are expected to materialize in 2025 and beyond, indicating long-term impact rather than an immediate turnaround.