Home / Sector / Technology Shares / Why is ASX 200 tech share Block dropping like a stone today?

Why is ASX 200 tech share Block dropping like a stone today?

What's going on with Block?

Posted by
Monica O'Shea
Monica is a journalist with experience working for Daily Mail Australia in Sydney and the Port Pirie Recorder and the Flinders News in South Australia. Monica completed a journalism cadetship in 2013. She also hold a B.Science (Biotechnology) with Honours from the University of Adelaide. Monica has worked in government at the local, state and federal level. Monica has a keen interest in finance and the share market and enjoys exploring the highs and lows. When not writing for Motley Fool Australia, Monica enjoys travel, sport, music, and likes to play the violin in her spare time.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • Block shares are falling 8% today 
  • The company's US listing also struggled overnight 
  • One analyst has cut the price target on Block's share price by 33%

The Block Inc (ASX: SQ2) share price is having a tough day on the market today.

Block shares are down 8.34% and are currently trading at $85.08.

So why is this ASX 200 tech share struggling today?

Disappointed man with his head on his hand looking at a falling share price his a laptop.

Image source: Getty Images

What's happening?

Block is falling today despite multiple Buy Now, Pay Later (BNPL) shares having a good day. For example, the Zip Co Ltd (ASX: ZIP) share price is up 4.22% today on the back of a quarterly update, while the Sezzle Inc (ASX: SZL) share price is up 2.81%.

However, Tyro Payments Ltd (ASX: TYR) shares are down 2.83% today. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) is 3.95% in the red at the time of writing.

Block is following in the footsteps of its US New York Stock Exchange listing today. Block Inc (NYSE: SQ) dropped 5.91% in the USA overnight.

Analysts at Jefferies have cut the price target on Block to $70 from $105, according to a report on NAB Trade. This is a 33% downgrade on its outlook for the Block share price.

Block recently made the list of the 10 most shorted shares on the ASX, which my Foolish colleague James reported on Monday.

Block listed on the ASX as SQ2 in February after taking over Afterpay.

Block share price snapshot

Block shares have slumped 52% in the year to date, while they have fallen 12% in a month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 9% in the last year.

This ASX 200 tech share has a market capitalisation of more than $3 billion based on the current share price.

Motley Fool contributor Monica O'Shea 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 ZIPCOLTD FPO and 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.

More on Technology Shares

A woman sits at her computer with her hand to her mouth and a contemplative smile on her face as she reads about the performance of Allkem shares on her computer
Technology Shares

Should I buy this ASX 200 tech stock at a 52-week low?

| Grace Alvino

Not every stock hitting a 52-week low is a bargain. But with strong growth and improving fundamentals, this may be…

Read more »

a man wearing spectacles has a satisfied look on his face as he appears within a graphic image of graphs, computer code and technology related symbols while he concentrates on a computer screen
Technology Shares

Are these the smartest ASX tech stocks to buy now with $2,000?

| Grace Alvino

When high-quality tech stocks fall sharply, it can create opportunity.

Read more »

Green arrow going up on stock market chart, symbolising a rising share price.
Technology Shares

2 ASX tech shares that could double from here

| Marc Van Dinther

Despite sharp recent falls, brokers continue to back these growth stocks.

Read more »

A young man talks tech on his phone while looking at a laptop with a financial graph superimposed across the image.
Technology Shares

Xero shares rise again. Is this the start of a turnaround?

| Aaron Teboneras

Xero shares rise but remain down 30% in 2026.

Read more »

A man sits with his head in his hand, looking quite dejected, as he holds a rubber tipped pen on the screen of a computer showing a graph trending downwards.
Technology Shares

Has the WiseTech stock finally hit rock bottom?

| Aaron Teboneras

WiseTech shares slide 34% this year as selling pressure begins easing.

Read more »

A female soldier flies a drone using hand-held controls.
Technology Shares

Electro Optic Systems just had its DroneShield moment. Here's what investors should know

| Kevin Gandiya

Stocks like EOS and DroneShield can deliver exceptional returns, but those returns come with volatility.

Read more »

A doctor appears shocked as he looks through binoculars on a blue background.
Technology Shares

Up over 900%: Is it too late to buy this incredible ASX tech stock?

| Samantha Menzies

The ASX stock has come off the boil in 2026 as investors pull back.

Read more »

An army soldier in combat uniform takes a phone call in the field.
Technology Shares

EOS shares rebound after yesterday's 16% plunge as insiders move to cash out

| Kevin Gandiya

EOS shares have been on a remarkable run, rising roughly 7x over the past year.

Read more »