The S&P/ASX 200 Index (ASX: XJO) is back in green territory so far today, with the ASX 200 presently up a robust 0.35%.
But the Block Inc (ASX: SQ2) share price is doing even better. Block shares are currently enjoying a healthy 4.14% bump to $88.29 each so far this Thursday.
This move must come with much relief for Block investors, who have had to watch the company slide a depressing 30% over the past month (even after the 8%-plus gains of the past week).
But Block (formerly known as Square) is still down by around half its value over 2022 thus far. So it’s certainly been a trying time for the company’s shareholders. Many of whom would still hold Block shares after the company took over the buy now, pay later (BNPL) pioneer Afterpay earlier this year.
Although Block is listed on the ASX, it is actually a US-based company, whose primary listing is Block Inc (NYSE: SQ) on the New York Stock Exchange.
SQ and SQ2 shares are essentially congruent in value though (factoring in exchange rates), so the company’s US stock has had a similar journey to Block’s ASX shares over this year.
Block shares have got a brand new buyer
We’ve recently got some news that a large buyer is swooping on Block following its steep falls over 2022.
As covered by our Fool colleagues over in the US, we’ve just found out that ARK Invest’s Cathie Wood has bought another US$5 million of Block shares.
Cathie Wood runs one of the most popular exchange-traded funds (ETFs) on the US markets – the ARK Innovation ETF (NYSE: ARKK).
This ARKK ETF has a reputation as the preeminent growth-based ETF on the US markets. It typically invests in companies like Tesla Inc (NASDAQ: TSLA), Shopify Inc (NYSE: SHOP) and Zoom Video Communications Inc (NASDAQ: ZM).
ARKK has taken a fairly big hit over 2022, but ARKK was a top performer over 2020 and 2021.
According to our colleagues across the Pacific, ARK bought nearly 355,000 Block shares over May. It stopped buying when the company topped US$80 a share. But ARK has resumed buying this week, with another 82,000 shares (US$5 million worth) acquired on Tuesday alone.
Block’s US stock has been trading around US$60 for most of this week. So clearly Cathie Wood is seeing some value in the Block share price right now.
But only time will tell if Block’s current price proves to be a low point for the company going forward.
At the current Block share price, this US tech company has a market capitalisation of US$35.21 billion.