Back to square one? Block (ASX:SQ2) share price gives back half of yesterday's gains

What is weighing on Block's stock today?

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Key points
  • The Block share price is tumbling today, falling 2.6% despite no news being released by the company
  • Its plunge sees it handing back nearly half of the 7.5% gain it racked up on Wednesday
  • However, it's not alone in the red. Much of the ASX 200 technology sector is also suffering today

It's been a rollercoaster week so far for the Block Inc CDI (ASX: SQ2) – formerly named Square – share price, and today is no different.

After gaining around 9.2% on Monday, the payment services provider's stock tumbled 5.1% on Tuesday.

It turned its slip around on Wednesday to gain another 7.49%. Unfortunately, it's handing back much of that today.

At the time of writing, the Block share price is $183.19, 2.61% lower than its previous close.

However, at its intraday low of $179.29, the Block share price was recording a 4.68% drop.

So, what's weighing the company's stock down today? Let's take a look.

A businessman carrying a briefcase looks at a square peg or block sinking into a round hole.

Image source: Getty Images

Why is the Block share price in the red on Thursday?

Block's stock is suffering alongside many of its S&P/ASX 200 Index (ASX: XJO) peers.

The S&P/ASX Information Technology Index (ASX: XIJ) is the worst-performing ASX 200 sector today, having slipped 1.03%. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is down 0.96%.

And while the sector struggles, Block is proving to be one of its biggest weights.

Its dip is only surpassed by the share prices of Life360 Inc (ASX: 360) and Megaport Ltd (ASX: MP1). They've fallen 2.74% and 2.61% at the time of writing.

On the opposite end of the spectrum, the EML Payments Ltd (ASX: EML) share price is the sector's best performer, having gained 3.07%. Meanwhile, that of TechnologyOne Ltd (ASX: TNE) is up 0.48%.

Computershare Limited (ASX: CPU) stock is also in the green, having gained 0.08%.

And for comparison's sake, given Block is the owner of former market-darling Afterpay, the Zip Co Ltd (ASX: Z1P) share price is suffering today.

It has fallen 6.08% at the time of writing despite no news released by the buy now, pay later company.

The Block share price's slide comes after its New York listing tumbled 4.5% overnight.

The NASDAQ Index also suffered in yesterday's session, slipping 1.32%.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., EML Payments, Life360, Inc., MEGAPORT FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. and EML Payments. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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