Block Inc. (ASX: XYZ) has slipped off the radar for many ASX investors.
That is not too surprising. The ASX 200 share is down almost 25% from its high, and the market has become much more selective with growth stocks.
But I think Block could be a comeback candidate worth watching.
This is still a business with major positions across payments, small business tools, consumer finance, buy now pay later, and digital banking. I do not think the long-term opportunity has disappeared.
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Two ecosystems with a lot of reach
The reason I like Block is that it touches both sides of commerce.
Square helps sellers accept payments, manage point-of-sale systems, access software, and run more parts of their businesses.
Cash App serves consumers, with payments, banking-style services, peer-to-peer transfers, and other financial tools.
That gives Block a large opportunity if it can keep connecting those ecosystems over time.
I like this because small businesses and consumers both want simpler financial tools. Sellers want to save time, reduce admin, and get paid. Consumers want fast, useful, easy-to-use money products.
Block is trying to sit in the middle of that activity.
AI could make the products more useful
The part of Block's latest update that stood out to me was its focus on practical artificial intelligence (AI).
Moneybot is now live across Cash App, while Managerbot is being scaled across Square sellers. These tools are designed to help customers and sellers take action, not just receive information.
That is the kind of AI use case I find interesting.
If AI can help a seller spot a problem, improve a workflow, understand patterns, or act before an issue grows, it could make Square more valuable.
If Cash App can use AI to help customers make better financial decisions, that could deepen engagement.
This is still early. Investors should not assume every AI product will become a major profit driver. But Block has a large customer base, and even modest improvements in engagement or efficiency could add up.
A stronger business than the market may remember
I also think Block is a more focused business than it used to be.
The company has been working to improve profitability while still growing. Its latest quarterly update pointed to strong gross profit growth, improving operating income, and rising engagement across key areas of Cash App and Square.
The main point is that Block is not just relying on hype. It is trying to grow while becoming more disciplined.
That combination can be powerful if management keeps executing successfully.
Foolish takeaway
Payments and fintech are competitive, consumer behaviour can shift, and investor sentiment towards growth stocks can change quickly.
But I think the market may be underappreciating the size of the opportunity. Block has two large ecosystems, a clearer focus on profitability, and emerging AI tools that could make its products more useful.
After a share price fall of almost 25% from its high, I think this forgotten ASX 200 share could be worth another look.
