If I'd put $5,000 in Block shares 5 months ago, here's what I'd have now

Was it a good idea to invest in this payments stock five months ago?

On Wednesday, Block Inc (ASX: SQ2) shares continued their positive run and recorded another solid gain.

The payments company's shares rose almost 2% to $128.96.

This is just the latest in a long run of gains that have been recorded by the Afterpay and Square owner, much to the delight of its shareholders after a long period of underperformance.

In fact, things have been so good in recent months, that Block shares have reached new two-year highs multiple times in the past few weeks thanks largely to a strong performance in the final quarter of 2023.

This means that if you had invested late last year, you would be laughing all the way to the bank now.

A young woman uses a laptop and calculator while working from home.

Image source: Getty Images

Investing $5,000 into Block shares

To demonstrate just how well Block shares have been performing recently, let's take a look at what a $5,000 investment five months ago would be worth now.

At the end of October, I could have picked up Block shares at a multi-year low of $60.56.

This means that for an investment of $5,026.48, I could have bought 83 units.

If we now fast-forward to today, with Block shares changing hands for $128.96, those units have a market value of ~$10,700.

That's a return on investment of approximately $5,700 or 113% in just five months.

Can its shares keep rising?

The team at Seaport Research in the United States is feeling very positive about the company.

It recently upgraded Block's US listed shares to a buy rating with a US$95 price target.

Based on current exchange rates, this price target works out to be approximately $145.69 for the Cash App owner's ASX listed shares. This suggests that its shares could still rise 13% from current levels.

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. The Motley Fool Australia has positions in and has recommended Block. 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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