The S&P/ASX 200 Index (ASX: XJO) endured a volatile, yet negative, session this Tuesday. After initially spiking in early trading this morning, the ASX 200 spent the rest of the day in negative territory. Saying that, it could have been a lot worse, with the index eventually closing down just 0.044%, leaving it at 8,949.4 points.

This miserly trading day for Australian investors comes after a similarly lacklustre start to the American trading week last night.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't quite clinch a rise either, dropping by a tiny 0.0099%

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more decisive, though, falling 0.26%.

But let's get back to the ASX now for a look at how the different ASX sectors handled today's interesting trading conditions.

Winners and losers

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

That usually leads me toward companies with scalable models, growing markets, and clear pathways to increase revenue. 

With that in mind, here are three ASX growth shares I would look at right now if I had $3,000 to invest.

Netwealth Group Ltd (ASX: NWL)

Netwealth is benefiting from a structural shift in how Australians invest.

More advisers are moving client funds onto platform-based solutions, and Netwealth has been capturing a growing share of that flow. As funds are added to the platform, revenue grows alongside it, creating a base that can continue to expand.

Those funds also tend to stay invested, which supports a more stable and predictable growth profile. Over time, that can create a compounding effect as new inflows build on top of an already growing base.

The business is also continuing to invest in its platform, adding new features and improving functionality for advisers. That helps it remain competitive and positions it well to keep attracting new clients.

DroneShield Ltd (ASX: DRO)

DroneShield is an ASX growth share operating in a market that is still in its early stages.

The increasing use of drones across defence, security, and civilian applications is driving demand for detection and countermeasure technology. As adoption grows, the need for protection systems becomes more important.

DroneShield has been expanding its product offering to meet that demand, with solutions that can be used across a range of environments. This allows it to target multiple markets rather than relying on a single use case.

There is also growing investment from governments and organisations in this area, which can support long-term demand. As awareness and adoption increase, the company has an opportunity to continue scaling its operations.

Block Inc (ASX: XYZ)

Block provides exposure to digital payments and financial services through two interconnected ecosystems.

Square supports businesses with payments and operational tools, while Cash App focuses on consumers. As both sides continue to grow, they reinforce each other, creating a broader and more valuable network.

This structure opens up multiple avenues for growth.

As more merchants use Square, more transactions flow through the system. As Cash App continues to grow its user base, engagement and monetisation opportunities increase. Together, they create a platform that can continue to expand over time.

Block is also moving into additional financial services, including lending and other tools (like Afterpay) that can deepen relationships with users and support further growth.

Foolish takeaway

Over time, growth often comes from businesses that can keep building as their markets expand.

I think these ASX growth shares are positioned in areas where demand is increasing and adoption continues to grow, which makes them interesting when thinking about long-term growth investing.

The post Where I'd invest $3,000 in ASX growth shares now appeared first on The Motley Fool Australia.

Over the past six months, Block Inc. (ASX: XYZ) has dropped 23%, while Zip Co Ltd (ASX: ZIP) has plunged a brutal 66% at the time of writing. Both buy-now-pay-later (BNPL) players have been hit by a perfect storm of market volatility, regulatory pressure, and shaky investor sentiment.

But here's the big question: is this a rare buying opportunity — or a value trap?

Block: Global reach, diversification

This $45 billion ASX financial stock brings serious scale and global reach to the table. Through its Square and Cash App ecosystems, Block has built a powerful payments and financial services platform spanning merchants and consumers.

That diversified model is a major strength, giving Block multiple growth levers beyond BNPL. The company formerly known as Square is also deeply embedded in the US market, which continues to lead in fintech innovation.

However, risks remain. Profitability has been uneven, and exposure to consumer spending makes it sensitive to economic slowdowns. There's also ongoing scrutiny around BNPL and digital payments.

Despite this, many analysts remain constructive. Several brokers continue to rate the ASX financial stock as a buy, pointing to its long-term growth potential and the possibility of a strong rebound as macro conditions stabilise.

Analysts have set a 12-month average price target of $163.67, implying a 92% upside at current levels of $85.29. The most bullish target is $256, which points to a whopping potential gain of 200%.

Zip: Higher risk, higher reward

Zip tells a more volatile story — but potentially a more explosive one. The ASX financial stocks has built a recognised BNPL brand, particularly in Australia, and is now focused on improving margins and driving profitability.

Its strategy centres on increasing revenue per customer and tightening credit quality, which could lead to a more sustainable business model. That's the upside.

The downside? Execution risk is high. Zip is still working to convince the market it can consistently deliver profits, and competition in the BNPL space remains intense. Add in regulatory uncertainty and shifting consumer behaviour, and it's easy to see why investors have been cautious.

Even so, some brokers see deep value at current levels. A number of analysts have maintained buy or even strong buy ratings on the ASX financial stock. They suggest the share price may have fallen too far relative to its long-term potential.

The average price target is $4.21, which suggests a 173% upside, while the most optimistic forecast is a 241% gain at the current share price level of $1.54.

So, where does that leave investors?

Both Block and Zip have been heavily sold off — but they're not broken businesses. The 2 ASX financial stocks operate in a sector that's still evolving, with digital payments and flexible finance continuing to gain traction globally.

The key difference comes down to risk tolerance. Block offers scale, diversification, and a more established footprint. Zip, on the other hand, is a higher-risk, higher-reward play that could deliver outsized gains if it executes well.

The bottom line? These ASX financial stocks have been smashed, but that's often when the biggest opportunities emerge. If sentiment shifts and execution improves, a doubling — or more — isn't out of the question.

The post 2 ASX financial stocks that could double – or even triple – in value appeared first on The Motley Fool Australia.

Large language models (LLMs) like ChatGPT and Google AI are trained to understand and generate text, code, and other content in ways a human would, and businesses have adopted the technology to improve productivity and efficiency. 

But the rapid uptake has also raised concerns that AI could actually disrupt software companies by reducing the need for traditional platforms.

At the same time, major advances in technology and a huge surge in investor enthusiasm saw valuations skyrocket out of pace with true business fundamentals.

And this created concern about whether AI has entered bubble territory.

After all, many Australian AI businesses are in the early stages of development. This means their share price is based on future potential rather than current earnings. 

Also, Australia's technology sector is smaller than the likes of the US, which means investor interest is concentrated in a handful of AI shares, thereby inflating prices. 

But the reality is that, while the AI hype is real, some ASX-listed AI stocks could now be considered undervalued.

Take Block Inc (ASX: XYZ) shares, for example.

Why Block shares are worth the hype

Block shares closed 2.1% higher on Tuesday afternoon, at $86.63 a piece.

The US-founded payment services platform acquired Australian buy now, pay later (BNPL) company Afterpay and has continued expanding ever since.

The company posted some strong profit results late last year but was caught in a perfect storm of headwinds, including concerns about rising interest rates, regulatory scrutiny, and fear around BNPL models. The combination slashed investor sentiment towards the end of 2025, and the sell-off continued in 2026.

Even so, the company's financials continued gaining momentum. In late February, Block posted its Q4 and FY25 results, revealing a 24% jump in gross profit for the quarter and a 17% increase for the year. Its FY25 adjusted operating income came in at US$2.08 billion, representing a 20% margin.

Looking ahead, the company is guiding to a gross profit of US$12.2 billion. This represents 18% annual growth, which is expected to be achieved with an operating income margin of 26%.

What upside do analysts expect from here?

TradingView data shows that analysts are extremely bullish on Block's outlook over the next 12 months.

Two out of three analysts have a strong buy rating on the stock, and another has a hold rating. Regardless, they all expect an upside ahead.

The maximum target price is $256, which implies a potential 194% upside at the time of writing. Even the minimum $95 target price represents a 9.2% upside for investors. 

It doesn't look like the bubble is bursting on this AI stock anytime soon.

The post AI may look like a bubble. But what about Block shares? appeared first on The Motley Fool Australia.

Four ASX shares that are avoiding the market weakness today are listed below. Here's why they are rising:

Beach Energy Ltd (ASX: BPT)

The Beach Energy share price is up 1.5% to $1.29. Investors have been buying the energy producer's shares following a rise in oil prices on Friday. Traders have been bidding oil prices higher this month in response to supply concerns caused by the conflict in the Middle East. Following today's move, Beach Energy shares are now up almost 20% since this time last month.

Block Inc (ASX: XYZ)

The Block share price is up almost 2% to $84.39. This follows the outperformance of its shares on the NYSE in the United States on Friday night. Unlike many tech stocks, this payments company's shares pushed higher on Wall Street. Last week, analysts at Truist Securities upgraded Block's NYSE shares to a buy rating (from hold) with an improved price target of $77.00 (from $72.00). This equates to a price target of approximately A$109 for its ASX listed shares, which implies potential upside of almost 30% for investors.

Life360 Inc. (ASX: 360)

The Life360 share price is up almost 4% to $18.78. As with Block shares, Life360's shares on Wall Street outperformed on Friday night and are playing catchup on Monday. A number of brokers are likely to be supportive of this buying. For example, last week, Morgan Stanley put an outperform rating and $30.00 price target on its shares. This implies potential upside of approximately 60% for investors from current levels.

Medibank Private Ltd (ASX: MPL)

The Medibank Private share price is up 3% to $4.33. This appears to have been driven by a broker note out of Ord Minnett. According to the note, the broker has retained its accumulate rating on the private health insurer's shares with a $5.10 price target. This suggests that Medibank's shares could rise 18% from current levels. The broker believes that the company is well-placed to benefit from higher interest rates and premium increases.

The post Why Beach Energy, Block, Life360, and Medibank shares are rising today appeared first on The Motley Fool Australia.

Some of these companies have been oversold, however, and for some, AI looks set to be a positive, allowing them to build products more cheaply and serve their customers better.

The analyst team at Citi has recently issued research notes to their clients on three ASX technology shares they think are looking cheap.

So let's take a look.

Xero Ltd (ASX: XRO)

Citi says that its analysis of the rate of business formation and insolvencies paints a positive outlook for Xero, "with business formation accelerating in Australia and US and insolvency trends improving in Australia and New Zealand, steady in UK and increasing in US''.

The Citi team added:

While there is typically a lag between both metrics and subscriber growth and churn for Xero, we see this as positive. One question is whether AI is driving an increase in business formation – in our view, it is likely too early but is an interesting trend to watch as it could be an offset to the disruption thesis.  

Citi has a price target of $144.80 on Xero shares, compared with its current price of $77, which would represent an 88.1% return if achieved.

Seek Ltd (ASX: SEK)

The Citi team believes there are some headwinds coming for employment listings company Seek, but they still think the company is undervalued.

On the downside, Citi says job listings in Australia were down 3% year on year in February and 0.5% month on month, which they said wasn't surprising given the rate hike in February.

The Citi team added:

After the rate hikes in February and March, Citi economists expect another hike in May due to concerns over inflation expectations. These may pose downside risk on job volumes for the remainder of FY26 and 1H27 job volumes.

Despite these moderating factors, Citi has a price target of $26 on Seek shares compared with $14.44 currently. If achieved, this would be an 80.1% return.

Block Inc (ASX: XYZ)

This company, which owns payments brands Square and CashApp, announced last month that it would slash staff numbers by 4,000 to a new headcount of 6,000.

Citi said this has been the focus of much investor attention, but in its view, the more interesting AI development would be its ability to drive product releases "leading to potential gross profit upside".

The Citi team added:

Focusing on recent initiatives led by AI releases, our proprietary analysis shows potential gross profit growth outperformance vs consensus by about 180 basis points in 2026, about 430 basis points in 2027 and about 440 basis points in 2028, pushing consolidated GP growth to the high-teens.

Citi has a price target of US$85 on Block shares, compared to US$59.37 currently. That increase would represent a 43.2% gain.

Applied to the Australian-listed Block shares, it would mean an increase from $82.86 currently to $118.57.

The post What are the 3 ASX technology shares Citi rates as a buy at the moment? appeared first on The Motley Fool Australia.

With that mindset, I tend to look for companies operating in large markets with strong brands, scalable platforms, or structural tailwinds behind them.

Here are five ASX shares I'd be happy to buy and hold for the next decade.

Sigma Healthcare Ltd (ASX: SIG)

Sigma has been transformed following its merger with Chemist Warehouse, creating one of the most powerful pharmacy groups in Australia.

The combined business brings together Chemist Warehouse's retail strength and brand recognition with Sigma's wholesale distribution and supply chain expertise. That combination gives the group enormous scale across both pharmacy retail and pharmaceutical distribution.

Chemist Warehouse already has a dominant position in the Australian pharmacy market and continues expanding internationally. With Sigma now integrated into the group, the merged business has the potential to unlock meaningful efficiencies and growth opportunities over time.

For long-term investors, I think the scale and brand strength of the Chemist Warehouse network make Sigma a very interesting business to watch over the coming decade.

REA Group Ltd (ASX: REA)

REA Group operates one of the most valuable digital platforms in Australia through realestate.com.au.

Property listings are a critical part of the real estate industry, and REA has built an incredibly strong position with both agents and buyers. When people search for property online in Australia, realestate.com.au is usually where they start.

That network effect has allowed REA to steadily increase pricing and expand its product offering for real estate agents over time.

Even when property volumes fluctuate with the housing cycle, the long-term shift toward digital property marketing continues to support the business. I think that structural advantage gives this ASX share a strong foundation for long-term growth.

WiseTech Global Ltd (ASX: WTC)

WiseTech Global has built one of the most ambitious technology platforms on the ASX.

Its CargoWise software helps logistics companies manage complex global supply chains. Freight forwarders, customs brokers, and logistics providers rely on the platform to coordinate the movement of goods across borders.

The logistics industry is enormous and still relatively fragmented from a software perspective. WiseTech's strategy has been to build a global operating system for the industry, integrating logistics processes into a single platform.

That vision gives the company a very large long-term opportunity. If WiseTech continues expanding its platform and integrating more of the global logistics ecosystem, its revenue and earnings could look dramatically larger over the next decade.

Aristocrat Leisure Ltd (ASX: ALL)

Aristocrat Leisure is one of the world's leading gaming companies.

The business has long dominated the global gaming machine market, supplying slot machines and digital gaming systems to casinos around the world. But in recent years, the company has also built a strong presence in mobile gaming through its social casino and mobile gaming divisions.

This combination of land-based gaming and digital gaming gives Aristocrat multiple growth drivers.

Gaming remains a highly profitable industry with strong global demand, and Aristocrat has proven over many years that it can create games that resonate with players. If it continues innovating and expanding across both casino and mobile platforms, I think this ASX share could remain a major global player for many years to come.

Block Inc. (ASX: XYZ)

Block is a global financial technology company focused on making financial services more accessible.

Through its Square ecosystem, the company provides payment solutions, point-of-sale technology, and business tools for merchants. Meanwhile, its Cash App platform offers peer-to-peer payments, banking features, and investing services to consumers.

What makes Block interesting is the scale of its ecosystem. Millions of businesses and consumers use its products every day, creating a powerful network that can support additional financial services over time.

Digital payments and fintech adoption continue to expand globally, and Block remains well-positioned to benefit from that shift as it continues building out its ecosystem.

Foolish Takeaway

Sigma, REA Group, WiseTech Global, Aristocrat Leisure, and Block all operate in large markets with long-term growth potential.

If these businesses continue executing well, I think they could reward patient investors over the next decade.

The post 5 ASX shares I'd buy and hold for the next decade appeared first on The Motley Fool Australia.

Here are three that I have my eye on. And they're all tipped to rise at least 130% over the next 12 months.

Catapult Sports Ltd (ASX: CAT) 

Catapult is a global sports data and analytics company that provides real-time data to optimise athletes' performance. The tech company reported a 16% revenue uplift in the first half of FY26 and a 19% hike in its annualised contract value (ACV). Catapult expects to maintain strong ACV growth through the second half of FY26, driven by low customer churn and ongoing improvements in margins and cash flow. 

Catapult is quickly gaining traction, and its recurring subscriptions means it benefits from customer retention. That translates to a higher and more stable margin. 

The ASX 200 company's shares were caught up in broad market sell-off on Tuesday, closing 7% lower for the day at $3.29 a piece. The drop means the shares are now 8% lower for the year. But analysts predict the shares could climb as high as 138% to $7.83 over the next 12 months.

Mesoblast Ltd (ASX: MSB)

Mesoblast is an Australian clinical-stage biotech stock that develops and commercialises allogeneic cellular medicines to treat complex diseases. Some products are already in use, and other cell therapies are in the late stages of clinical trials. 

The business has great potential for robust growth this year. Its products are gaining traction and the business is well-funded. The stock has tumbled over the past week but I think this looks like a buying opportunity rather than a reason to panic. If momentum starts to pick up pace the share price can recover its losses quickly. 

At the close of the ASX on Tuesday, the ASX 200 biotech shares were down 3% at $2.01. But analysts are bullish that there is good upside ahead. There is a strong buy consensus and a maximum target price of $4.92. That implies a potential 145% upside at the time of writing. 

Block Inc (ASX: XYZ)

Block, formerly Square, is a global company best known for providing payment-acquiring and related services to businesses. The company posted some strong profit results late last year but has been caught in a perfect storm of headwinds. These include rising interest rates, regulatory scrutiny, and concerns about buy now, pay later models. The combination slashed investor sentiment towards the end of 2025. 

The sell-off has continued into 2026. However, an uptick in investor interest late last week, following the company's results, resulted in a 26% increase in the share price in the past 5 days alone. Analysts think the share price could jump another 186% to $256 over the next 12 months.

The post 3 ASX 200 shares tipped to climb 130% (or more) in the next 12 months appeared first on The Motley Fool Australia.

During Monday morning trading, the ASX stock lost some of Friday's gains, 4.7% at $89.74.

Over the past 6 months, Block shares are down around 23%, reminding investors just how volatile Block can be.

Easy money management

Block is the company behind Square, Cash App, and Afterpay. Its goal is simple: make moving and managing money easier outside the traditional banking system.

The $54 billion ASX share provides digital payments technology to small businesses, peer-to-peer transfers, banking-style services to consumers, and buy now, pay later solutions through Afterpay.

The latest result gave investors something to cheer. Gross profit rose solidly year on year, Cash App continued to grow, and management lifted full-year guidance.

For the full year that ended 31 December 2025, gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion.

AI will replace 4,000 cut jobs

Just as importantly, Block announced it would cut more than 4,000 roles as part of a push to streamline operations and lean more heavily on AI. The market clearly liked the focus on efficiency and margin improvement and jumped at Block shares.

There are real strengths here. Block has a large and engaged user base, strong brand recognition in digital payments, and an ecosystem that links merchants and consumers. If it can keep growing gross profit while tightening costs, operating leverage could drive stronger earnings over time.

Fierce competition, regulatory scrutiny

But risks remain. Competition in payments and digital wallets is intense. The buy now, pay later (BNPL) sector faces regulatory scrutiny and credit risk, especially if consumer spending slows. Profitability has also been inconsistent, and investor confidence has been shaken during previous sell-offs.

So, are Block shares back in play? The 24.7% upswing in the past 5 days suggests sentiment is improving. However, the real test will be whether management can turn cost cuts and AI investment into sustained profit growth. If execution improves, the current pullback could look like an opportunity. If not, volatility may stick around.

What next for Block shares?

Analysts are pretty bullish on Block shares. TradingView data shows 2 out of 3 analysts have a strong buy rating on the stock, and one has a hold.

The maximum target price is $256, implying a massive 172% upside for investors at the time of writing. Even the average $163.67 target price represents a potential 74% gain for investors over 12 months.

The post Are Block shares back in play? appeared first on The Motley Fool Australia.

As it happens, the ASX 200 closed the week right on its new record high of 9,198.6 points after a bouncy day that saw stints in both red and green territory. That was a gain worth 0.25% for the index.

This happy end to the Australian trading week on the ASX comes after a decidedly less sunny morning over on the American markets.

The Dow Jones Industrial Average Index (DJX: .DJI) managed to squeak a rise, but only just, inching 0.034% higher.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was far more decisive, but not in a good way, falling 1.18%.

But let's get back to the happier market now, though, and take a deeper look at what the various ASX sectors were up to this session.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

4DMedical Ltd (ASX: 4DX)

The 4DMedical share price is up 7.5% to $4.00. Investors have been buying the respiratory imaging solutions provider's shares following the release of its half-year results. 4D Medical reported a 1% decline in revenue to $2.8 million and an adjusted net loss of $16.2 million. The latter was an improvement of 18% on the prior corresponding period. At the end of the period, the company had a pro forma cash position of $206.2 million. Looking ahead, the company highlights that its recently approved CT:VQ product has a major market opportunity. It said: "CT:VQ addresses a substantial market opportunity, with over one million nuclear VQ scans performed annually in the U.S. at an average reimbursement of approximately US$1,150 per scan, representing an initial addressable market exceeding US$1.1 billion annually in the U.S. alone (estimated at over US$2.6 billion globally)."

Block Inc (ASX: XYZ)

The Block share price is up 28% to $93.95. This has been driven by the release of the payments giant's full-year results and the announcement of major job cuts. For the 12 months ended 31 December, Block's gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion. But the big news was Block's founder and CEO, Jack Dorsey, revealing a massive reduction in its workforce. He said: " Today we shared a difficult decision with our team. We're reducing Block by nearly half, from over 10,000 people to just under 6,000. […] The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We're already seeing it internally. A significantly smaller team, using the tools we're building, can do more and do it better. And intelligence tool capabilities are compounding faster every week. I don't think we're early to this realization. I think most companies are late."

PEXA Group Ltd (ASX: PXA)

The PEXA share price is up 6.5% to $15.23. This morning, this property settlements technology company released its half-year results. It reported a 10% increase in revenue to $215.3 million and a 33% jump in group NPATA to $40.3 million. PEXA's CEO, Russell Cohen, said: "PEXA delivered a strong result in the first half in FY26, underpinned by record transaction volumes in Australia, disciplined cost management and continued progress in the UK."

Weebit Nano Ltd (ASX: WBT)

The Weebit Nano share price is up 3% to $4.88. This follows the release of the semiconductor company's half-year results. Weebit Nano reported record half-year revenue of $5.6 million. This means it is on track to achieve its full-year revenue guidance of $10 million. Weebit Nano's CEO, Coby Hanoch, said: "The first half of FY26 has marked Weebit's strongest start to a fiscal year in the company's 10-year history as technical and commercial momentum continues to build."

The post Why 4DMedical, Block, PEXA, and Weebit Nano shares are launching higher today appeared first on The Motley Fool Australia.

At the time of writing, the payments giant's shares are up 30% to $96.60.

This follows the release of its fourth-quarter and full-year results this morning.

Block shares rocket on results day

For the three months ended 31 December, Block reported a 24% increase in gross profit to US$2.87 billion.

This was driven by a 33% lift in Cash App gross profit to US$1.83 billion and a 7% increase in Square gross profit to US$993 million.

For the 12 months, gross profit increased 17% to US$10.36 billion. This reflects a 21% jump in Cash App gross profit to US$6.34 billion and a 9% lift in Square gross profit to US$3.94 billion.

FY 2025 adjusted operating income came in at US$2.08 billion, representing a 20% margin.

But there was something else that gave Block shares a huge lift today. Job cuts.

What was announced?

Block has announced that AI tools are making it possible to undertake a major reduction in its head count. Block's founder and CEO, Jack Dorsey, explained:

Today we shared a difficult decision with our team. We're reducing Block by nearly half, from over 10,000 people to just under 6,000, which means that over 4,000 people are being asked to leave or entering into consultation. I want to use this letter to explain why I believe this is the right path for our company, and what Block looks like going forward.

The core thesis is simple. Intelligence tools have changed what it means to build and run a company. We're already seeing it internally. A significantly smaller team, using the tools we're building, can do more and do it better. And intelligence tool capabilities are compounding faster every week. I don't think we're early to this realization. I think most companies are late. Within the next year, I believe the majority of companies will reach the same conclusion and make similar structural changes. I'd rather get there honestly and on our own terms than be forced into it reactively.

Outlook

Looking ahead, the company is guiding to gross profit of US$12.2 billion, which represents 18% annual growth.

This is expected to be achieved with an operating income margin of 26%.

The company's COO and CFO, Amrita Ahuja, commented:

We're executing well on our growth strategies across the business. At Investor Day we shared our preliminary view of gross profit for 2026, which called for 17% year-over-year gross profit growth. We now expect to deliver gross profit growth of 18% year over year in 2026, to $12.20 billion. We are focused on sustaining momentum and we plan to continue to invest in significant long term growth initiatives across our agentic AI infrastructure, proactive intelligence products, high ROI go to market expansion, Neighborhoods, and high return on capital lending products.

The post Why are Block shares rocketing 30% on Friday? appeared first on The Motley Fool Australia.

What did Block report?

• Q4 2025 gross profit: US$2.87 billion, up 24% year-on-year
• Cash App gross profit: US$1.83 billion, up 33% year-on-year
• Square gross profit: US$993 million, up 7% year-on-year
• Q4 2025 adjusted operating income: US$588 million (20% margin), up 46% year-on-year
• Diluted EPS: US$0.19; adjusted diluted EPS: US$0.65, up 38% year-on-year
• Raised full-year 2026 guidance to US$12.2 billion gross profit (18% growth) and adjusted operating income of US$3.2 billion (26% margin)

What else do investors need to know?

Block announced a major restructuring, reducing its workforce by over 40%—from more than 10,000 people to just under 6,000. Management explained that advances in artificial intelligence are enabling a smaller team to work more efficiently and at higher velocity.

During the quarter, Block delivered strong growth in lending, with Cash App Borrow origination volume up 223% versus last year. Engagement on Cash App continues to deepen, with monthly active users up to 59 million and primary banking customers reaching 9.3 million.

What's next for Block?

Looking ahead, Block has lifted its full-year 2026 guidance, now aiming for gross profit growth of 18%, driven by ongoing investment in product development and high return-on-capital lending. The company expects to see benefits from its new, leaner, AI-driven operating model flow through to improved profitability, with a projected adjusted operating income margin of 26% this year.

Management said the focus will be on product speed, scaling AI-powered capabilities, and expanding flagship offerings such as Cash App Green and proactive intelligence products across the business.

Block share price snapshot

Over the past 12 months, the Block shares have declined 28%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 11% over the same period.

View Original Announcement

The post Block Q4 2025 earnings: Profit jumps as AI transformation begins appeared first on The Motley Fool Australia.

Away from the banks and major miners, a number of quality names have been sold off heavily over the past year. In my view, some of that weakness looks overdone.

Here are five oversold ASX shares I would be looking at before the end of February.

Xero Ltd (ASX: XRO)

Xero has been caught up in the broader sell-off across global software stocks.

Concerns around valuation, artificial intelligence (AI) disruption, and slowing growth have weighed on sentiment. But when I look at the business itself, I still see a high-quality subscription model with sticky customers and strong recurring revenue.

Xero continues to expand internationally and improve margins. If earnings and subscriber growth continue, I think its share price could be due to a major re-rating.

Zip Co Ltd (ASX: ZIP)

Zip has had a volatile journey over the past few years.

After scaling aggressively during the buy now, pay later boom, the company has since tightened credit settings, exited weaker markets, and focused on profitability. The share price has reflected both extremes of sentiment.

To me, this now looks like a more disciplined business. If execution continues to improve and losses remain under control, I believe the market could reassess its long-term earnings potential.

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix has delivered strong commercial growth, yet its share price has pulled back significantly from recent highs on US FDA product approval delays.

The company continues to expand its precision medicine franchise while investing heavily in its therapeutic pipeline. Revenue growth has been robust, and guidance for further growth in FY26 remains in place.

When a high-growth healthcare business with commercial traction trades below prior peaks, I start to pay attention. I think the recent weakness may offer an opportunity for patient investors.

Block Inc. (ASX: XYZ)

Block's Australian-listed shares have also been sold off amid broader tech weakness.

Digital payments and fintech remain competitive and fast-evolving industries. But Block still has a strong ecosystem across payments, point-of-sale solutions, and consumer finance.

If growth stabilises and margins improve over time, the current share price could look overly pessimistic. For investors willing to accept some volatility, I see potential upside from here.

REA Group Ltd (ASX: REA)

REA has faced pressure due to softer property listings volumes, broader market caution, and AI disruption fears.

However, the company's dominant position in Australian online property advertising remains intact. It has pricing power, strong brand recognition, and high-margin digital operations.

While short-term listing volumes can fluctuate, the long-term shift to digital property search is not reversing. If volumes recover even modestly, earnings could rebound more quickly than the market expects.

Foolish takeaway

Oversold does not automatically mean undervalued. Sometimes shares fall for good reasons.

But I think Xero, Zip, Telix, Block, and REA each represent cases where sentiment may have swung too far to the downside relative to long-term business quality.

The post 5 oversold ASX shares to buy before the end of February appeared first on The Motley Fool Australia.

Right now, three ASX shares stand out to me for different reasons. All have been volatile. All carry risk. But at current prices, I believe they offer compelling upside relative to what the market seems to be assuming.

DroneShield Ltd (ASX: DRO)

DroneShield has been one of the most talked-about defence technology names on the ASX, and for good reason.

The company specialises in counter-drone solutions, using radio frequency detection and defeat technologies to neutralise hostile drones. With global conflicts highlighting the growing importance of drone warfare, demand for these systems is no longer theoretical. It is real and accelerating.

What I find particularly attractive is the scale of the opportunity relative to the company's current size. Defence budgets globally are expanding, and counter-UAS capability is becoming a priority rather than an optional extra. DroneShield has built battlefield credibility, which I think gives it a genuine edge.

Yes, the share price has been volatile. And yes, revenue can be lumpy due to the nature of defence contracts. But when I look at the addressable market and the company's expanding sales pipeline, I see asymmetric upside.

At these prices, I'd be comfortable loading up gradually and holding through the noise.

Block Inc. (ASX: XYZ)

Block is a very different story, but I think the opportunity is just as interesting.

Through Square, it provides payment and business tools to merchants. Through Cash App, it has built a powerful consumer financial ecosystem. And of course, it owns Afterpay, a brand that is deeply embedded in the Australian retail landscape.

Over the past year, tech sentiment and macro concerns have weighed heavily on the share price. Investors have questioned growth rates, margins, and exposure to consumer spending. But when I step back, I still see a business with enormous optionality.

Cash App continues to monetise its user base. Square remains a core operating system for small businesses. And the integration of Afterpay into the broader ecosystem strengthens both sides of the network.

If execution continues and growth stabilises, I believe the current valuation could look very conservative in hindsight. For investors willing to tolerate volatility, I think this is one worth loading up on.

Zip Co Ltd (ASX: ZIP)

Zip has been through the wringer over the past few years, but this is not the same business it once was.

The company has tightened credit settings, exited weaker markets, and focused on profitability. Importantly, it is no longer in survival mode. It has demonstrated improving margins and better credit performance, which I think the market is still underappreciating.

Buy now, pay later as a sector has matured. The reckless growth-at-all-costs phase is over. What remains are operators that can balance growth with discipline. I believe Zip is positioning itself as one of those operators.

With the share price crashing on Thursday, expectations appear far more grounded. If revenue growth continues and credit metrics remain stable, the earnings leverage could surprise on the upside.

At these levels, I see an attractive setup for long-term investors.

Foolish takeaway

DroneShield, Block, and Zip are not low-volatility blue chips. They are growth-oriented businesses operating in fast-moving sectors.

But that's why I find them compelling at current prices. When sentiment is cautious and expectations are subdued, I think that's often when the seeds of strong future returns are planted.

For me, these are three ASX shares I'd be happy to load up on and hold for the years ahead.

The post 3 beaten down ASX shares I'd load up on at these prices appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

Of course, not every down-and-out company is a value.

But here are three ASX shares that might have fallen too far to ignore. 

Telix Pharmaceuticals Ltd (ASX: TLX)

Telix is a commercial-stage biopharmaceutical company focused on the ongoing development of diagnostic and therapeutic ('theranostic') products using targeted radiation.

This ASX healthcare stock has fallen 22% year to date and more than 67% in the last 12 months. 

Yesterday, its share price closed at $8.84. 

However, it was just upgraded to a strong buy rating from analysts via the CommSec platform, which could indicate that it is now below fair value. 

This includes a buy rating from Citi with a $34 price target and a buy rating and $20 price target from TD Cowen. 

Bell Potter sits in the middle with a price target of $23.

From yesterday's closing price, this indicates an upside between 126% and 284%. 

Block Inc (ASX: XYZ)

Block is a global company best known for providing payment-acquiring and related services to businesses.

Its share price is down almost 28% year to date and 46.8% over the last 12 months. 

Yesterday it closed at $70.47. 

Despite the fall, it did post some impressive profit results last year.

It has been dealing with headwinds like rising interest rates, sour buy now, pay later sentiment, and regulatory struggles. 

But with these ASX shares now close to 52-week lows, it could be simply too cheap to pass up. 

Recent analyst estimates include positive ratings and an average target price of $164.67. 

That indicates an upside of 133.6% for these battered ASX shares. 

Guzman y Gomez Ltd (ASX: GYG)

Guzman y Gomez is a Mexican-inspired quick-service restaurant operator and franchisor, mostly operating in Australia.

After a positive debut on the ASX back in mid-2024, it's been a steady fall for these ASX shares. 

GYG shares are now down almost 55% in the last year, closing yesterday at $19.50. 

Despite the fall, sentiment for these ASX shares has started to turn, with experts seeing long-term value in the company. 

Earnings last year were positive; however, an important date to watch for prospective investors will be Friday, February 20, when the company releases H1 FY26 results.

Late last month, Morgans placed a buy rating and $32.30 price target on GYG shares thanks to optimism around new products. 

This indicates an upside of more than 65%. 

The post Are these ASX shares too cheap to pass up? appeared first on The Motley Fool Australia.

The good news is that some ASX 200 shares are tipped to scream higher over the next 12 months. Here are five of them, and they're all forecast to gain 100% or more in 2026.

Mesoblast Ltd (ASX: MSB)

Mesoblast is an Australian clinical-stage biotech company that develops and commercialises allogeneic cellular medicines to treat complex diseases. It has a couple of products already in use, and other cell therapy candidates are in the late stages of clinical trials. The business has exceptional potential for strong growth this year, it's well-funded, and it won't be subject to the US 100% pharmaceutical tariff. Analysts think the shares could climb another 109.52% from the share price at the time of writing, to $5.04 a piece.

Block Inc (ASX: XYZ)

The US-founded company, best known for providing payment-acquiring and related services to businesses, posted some impressive profit results late last year. But the ASX 200 company has been caught in a perfect storm of rising interest rates, regulatory scrutiny, and concerns around buy now, pay later models, which slashed investor sentiment towards the end of 2025. It looks like the sell-off has continued into 2026, but analysts are bullish that there will be a huge upside ahead. Block shares are tipped to climb as high as $245 each, which implies a 199.64% upside at the time of writing. 

Nextdc Ltd (ASX: NXT)

I'm a big fan of this ASX 200 stock, and I think the business has a lot more to bring to the table amid the AI boom. NextDC operates a rapidly expanding network of data centres focused on cloud computing and telecommunications, and supports AI workloads. It has physical centres, cooling, power, security services, and project support. As data usage continues growing, demand for this type of secure, high-quality infrastructure is very likely to grow alongside it. The company is heavily investing in expanding its business, too, with new partnerships and contracts. Some analysts think the share price will climb to $29.36 a piece this year, which implies a 124.04% upside at the time of writing. 

Catalyst Metals Ltd (ASX: CYL)

The Western Australian gold producer announced a significant new high-grade discovery at its Plutonic Gold Belt. The ASX 200 gold miner also delivered impressive FY25 financial results last year. This represents a long period of operational consistency and organic growth. It looks like there will be plenty more upside ahead for its shares this year. Analysts tip a maximum target price of $18.90, which implies a potential 149.01% upside at the time of writing.

Nickel Industries Ltd (ASX: NIC)

Nickel Industries owns a portfolio of mining and downstream nickel processing assets in Indonesia. It has a controlling interest in the Hengjaya nickel mine and four rotary kiln electric furnace projects. These produce nickel pig iron (NPI) for the stainless-steel industry and materials for EV batteries. The company has had a very strong start to 2026. It has posted news of a new acquisition and strong financial results, pushing its share price higher this year. The ASX 200 Nickel business is planning to expand further this year, too. Analysts are tipping the shares to climb another 131.26% to $2.10 a piece over the next 12 months, at the time of writing.

The post 5 ASX 200 shares forecast to soar 100% (or more) in 2026 appeared first on The Motley Fool Australia.

That's how I see WiseTech Global Ltd (ASX: WTC) and Block Inc (ASX: XYZ) right now. Both are down sharply over the past year, but when I step back and look at what these companies actually do, I think the market is being overly pessimistic.

WiseTech Global shares

WiseTech is a company that sits right in the middle of global trade, providing mission-critical software that freight forwarders, customs brokers, and logistics providers rely on every single day.

Its CargoWise platform is effectively the operating system for global logistics. Once a customer adopts it, switching is painful, expensive, and risky. That creates the kind of stickiness and recurring revenue profile I really like in long-term growth businesses.

What often gets missed is the scale WiseTech has already achieved. It services many of the world's largest freight forwarders, processes millions of shipments, and continues to expand its functionality through acquisitions and internal development. This isn't a speculative product. It's a deeply embedded infrastructure.

The share price fall hasn't come out of nowhere. Slower growth in the core business, management and board upheaval, and highly publicised issues around the founder all damaged confidence. On top of that, the integration of a large acquisition has added complexity at a time when investors were already nervous about tech valuations.

But when I look through the noise, I see a business that is refocusing on execution. Product launches, a new commercial model, and operational integration all point to improving momentum.

For me, this feels less like a broken story and more like a reset phase.

Block shares

Block is often talked about as if it's one product or one trend. In reality, it's an ecosystem business with multiple growth engines.

On one side, there's Square, which provides payments, software, and financial tools to millions of small and medium-sized businesses globally. On the other, there's Cash App, which has evolved into a full-featured consumer finance platform with tens of millions of active users. Then there's Afterpay, which Australian investors already know well, sitting inside the broader Block ecosystem.

What really stands out to me is how these products reinforce each other. Sellers use Square, consumers use Cash App, and Afterpay sits at the point of transaction, increasing engagement and monetisation across the platform.

Block has been caught in a perfect storm. Rising interest rates hit fintech valuations, regulatory scrutiny increased, and concerns around buy now, pay later models weighed heavily on sentiment. Even a strong operating performance hasn't been enough to stop the sell-off.

Yet the underlying numbers tell a very different story. Cash App continues to grow users and monetisation. Square is gaining share in key verticals. The business is generating meaningful operating income and free cash flow, while continuing to invest heavily in product innovation, including AI-driven tools.

To me, this disconnect between business momentum and share price is exactly what creates opportunity.

Why I think both could beat the market

Neither WiseTech nor Block needs bold assumptions to deliver strong returns from here. They simply need to keep executing.

WiseTech benefits from global trade complexity only increasing over time, whereas Block benefits from the ongoing shift toward digital payments, integrated financial services, and platform-based ecosystems.

Both ASX 200 shares have been heavily sold off. Both businesses are still growing. And both, in my view, look far more attractive today than they did when sentiment was euphoric. That's why these two unloved ASX 200 shares are ones I'm quietly backing to surprise investors over the next few years.

The post 2 unloved ASX 200 shares I'm tipping to beat the market appeared first on The Motley Fool Australia.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.