Why is the Block share price sliding today?

The BNPL ASX share appears to be following in the footsteps of its US counterpart.

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Key points

  • Block on the ASX is sliding by more than 3% today 
  • The company's NYSE listing also descended more than 5% today 
  • A broker downgrade on the US listing may have impacted the Block share price 

The Block Inc (ASX: SQ2) share price is in the red today. Block shares are currently swapping hands at $115.12, a 3.45% fall.

For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.36% in the green at the time of writing.

Let’s take a look at what could be impacting the Block share price today.

US listing slides

Block shares may be down, but it is not the only buy now, pay later (BNPL) ASX share to slide today. The Openpay Group Ltd (ASX: OPY) share price is down 6.35%, Sezzle Inc (ASX: SZL) shares have dropped 2.17%, and the Zip Co Ltd (ASX: ZIP) share price is descending 0.53%. Meanwhile, Beforepay Group Ltd (ASX: B4P) shares are climbing 1.27%. The S&P/ASX All Technology Index (ASX: XTX) is falling 1.2% today.

Block’s ASX share price appears to be following in the footsteps of the company’s US listing. Block Inc (NYSE: SQ) fell 5.29% on the New York Stock Exchange on Monday.

Daiwa Securities cut the price target on Block’s US listing to $100 from $170. This is still 25% more than the current share price of $79.70. Further, Daiwa relegated the share from a “strong buy” to “buy”.

Block recently reported a 22% fall in revenue to US$3.96 billion. However, gross profit jumped 34% year on year to US$1.29 billion. The company also reported a positive start to the second quarter of this year.

Block listed on the ASX for the first time in February after acquiring Afterpay.

Block share price snapshot

The Block share price has descended 35% on the ASX since it listed, while it is down 32% in the past month alone. In the last week, Block shares have slumped by 14%.

For perspective, the benchmark ASX 200 index has dropped nearly 5% in the year to date.

Block has a market capitalisation of about $5 billion based on the current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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