Block share price jumps 9% following Cathie Wood investment

Block’s shares are jumping on Friday. Here’s why…

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The Block Inc (ASX: SQ2) share price has been among the best performers on the ASX 200 on Friday.

In morning trade, the payments company’s shares are up 9% to $96.66.

Why is the Block share price zooming higher?

Investors have been bidding the Block share price higher on Friday in response to a jump by the company’s US listed shares overnight.

On Wall Street, Block’s NYSE listed shares rebounded with an almost 11% gain to US$67.27. At current exchange rates, this equates to $97.50, which is just a touch ahead of where the locally listed Block share price trades today.

But why did its US shares jump?

The catalyst for this strong gain was news that Cathie Wood’s ARK Innovation fund has been topping up its holding.

Our friends over the Pacific report that Wood has spent a touch under US$5 million to acquire just over 82,000 Block shares.

Based on buying patterns, it appears as though Cathie Wood has been snapping up Block shares when they approach US$60 (A$87) and stopping once they reach US$80 (A$116).

One leading broker that would be supportive of this buying is Macquarie. At the end of last month, the broker put an outperform rating and A$180.00 price target on the company’s shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. 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 Australia has recommended Macquarie Group Limited. 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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