This awful Thursday for the local markets follows a much rosier night over on Wall Street.

The Dow Jones Industrial Average Index (DJX: .DJI) fared decently, rising 0.36%.

The tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) was a little more tentative, inching up just 0.07%.

But let's get back to the unhappier market now and take a closer look at what was happening amongst the various ASX sectors today.

Winners and losers

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

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.

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.

The post Down 25%: Could this forgotten ASX 200 share make a comeback? appeared first on The Motley Fool Australia.

This sees shares in the S&P/ASX 200 Index (ASX: XJO) buy now, pay later (BNPL) company, which acquired Afterpay in January 2022, up 11.42% over 12 months.

That's more than four times the 2.6% one-year gains delivered by the ASX 200.

And according to Andrew Dale, a partner and portfolio manager at ECP Asset Management, the BNPL giant still looks to be trading for a bargain (courtesy of The Australian Financial Review).

Should you buy Block shares today?

Asked which stock his fund holds that he believes is the most undervalued by the market, Dale pointed to Block shares.

According to Dale:

We believe Block – a financial technology company which owns Afterpay – is underappreciated and is a top position in the fund. In its most recent update, it demonstrated progress on its operational efficiency initiatives.

And unlike many tech focused company's, Dale said that artificial intelligence systems are supporting the stock's performance.

"The sustained focus on cost discipline and the deployment of AI-enhanced productivity tools supported margin expansion across both the Cash App and Square business units," he noted.

Summarising his bullish outlook on Block shares, Dale concluded:

With the company executing towards its upgraded guidance and maintaining steady growth in gross sales, its medium-term earnings trajectory and improving product launch velocity paints a bullish picture.

What's the latest from the ASX 200 BNPL stock?

Block reported its first-quarter (Q1 2026) results on 8 May.

Highlights include net quarterly revenue of US$6.06 billion, with the company achieving a gross profit of US$2.91 billion, up 27% from Q1 2025.

However, impacted by US$852 million in restructuring and legal costs, Block reported a Q1 operating loss of US$172 million.

Following the strong first-quarter performance, the company increased its full calendar year 2026 gross profit guidance to US$12.33 billion, up 19% from 2015. Block expects to achieve a full-year adjusted operating income margin of 27%.

As for the AI-enhanced productivity tools that Dale mentioned above, Block CEO Jack Dorsey said, "We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers."

Dorsey noted:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers.

Block shares closed up 4.8% on the day of the results release.

The post Why Afterpay owner Block shares are looking undervalued appeared first on The Motley Fool Australia.

In some cases, I think the sell-off has gone too far.

The two shares in this article are down almost 30% and almost 70% from their highs. Those are significant declines, and they show just how much sentiment has shifted.

But I do not think the long-term growth stories have disappeared.

For patient investors, this kind of share price weakness can create the chance to buy high-quality technology businesses at far more attractive prices than before.

Block Inc (ASX: XYZ)

Block is a much broader business than many investors may realise.

This ASX tech stock owns Cash App, Square, Afterpay, and a number of financial tools that connect consumers, sellers, payments, lending, and commerce.

I like Block because it sits on both sides of the transaction.

Cash App gives it a large consumer finance platform. Square gives it relationships with sellers. Afterpay gives it exposure to buy now, pay later and consumer lending. Put together, Block has the chance to build a more connected financial ecosystem than a traditional payments company.

The company is also leaning heavily into artificial intelligence (AI).

Block is using AI internally to improve engineering speed and product development, while also adding smarter tools into Cash App and Square. Its Moneybot and Managerbot products are designed to help customers and sellers identify useful actions, such as managing spending, spotting business cost changes, or improving financial habits.

That is where I think the long-term opportunity becomes interesting.

Block is not just trying to process payments. It is trying to make its platforms more useful, proactive, and embedded in daily financial decisions.

There are risks, of course. Lending growth needs to be managed carefully, competition is intense, and regulation is always worth watching in financial services.

But if Block keeps improving Cash App, Square, Afterpay, and its AI tools, I think the company could be far more valuable in the future.

The Block share price is down almost 30% from its high.

WiseTech Global Ltd (ASX: WTC)

WiseTech is another beaten-down ASX tech stock I would be happy to buy for the long term.

The company is building software for one of the most complicated parts of the global economy: trade and logistics.

That may not sound as exciting as consumer apps or artificial intelligence, but global trade is filled with complexity. Goods need to move across countries, ports, warehouses, customs systems, transport networks, and compliance regimes.

That complexity creates demand for specialist software.

WiseTech's CargoWise platform already plays a key role for freight forwarders and logistics companies. The company serves more than 22,000 logistics companies and industry participants across 193 countries, including many of the world's largest freight forwarders and third-party logistics providers.

I think that gives WiseTech a powerful starting point.

The company is also expanding beyond logistics through areas such as trade, supply chain, customs, trade finance, and verified identity and data. That could turn WiseTech into a much broader operating system for global trade.

AI could make that opportunity larger. Logistics involves a lot of manual data entry, document checking, compliance work, and exception management. If WiseTech can use AI to automate more of those tasks, its software could become even more valuable to customers.

The stock is not without risk. WiseTech has faced questions around valuation, acquisitions, leadership, and execution. But the market it serves is enormous, and its software is deeply tied to customer workflows.

The WiseTech share price is down almost 70% from its high.

Foolish Takeaway

Block and WiseTech face different questions, but both still have market positions that could become more valuable over time. 

One is building deeper financial relationships with consumers and sellers. The other is becoming more embedded in the systems that keep global trade moving.

Share price weakness does not remove the risks. But when quality tech businesses fall this far, I think long-term investors should at least be asking whether the market has become too pessimistic.

The post Why these ASX tech stocks could be no-brainer buys appeared first on The Motley Fool Australia.

This tough bookend to the week's trading for ASX investors follows a sobering session on the American markets overnight.

The Dow Jones Industrial Average Index (DJX: .DJI) couldn't keep its early rise and closed down 0.63%.

Things were a little tamer on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC), though, which fell 0.13%.

But let's get back to the local markets now to take a look at what was happening amongst the various ASX sectors this Friday.

Winners and losers

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:

Block Inc. (ASX: XYZ)

The Block share price is up 5% to $103.33. Investors have been buying the payments company's shares following the release of its quarterly update. Block delivered gross profit of US$2.91 billion for the first quarter of 2026. This was up 27% year on year. This was driven by strong growth across Cash App and Square. It revealed that Cash App gross profit was up 38% to US$1.91 billion and Square gross profit up 9% to US$982 million. Block's CEO, Jack Dorsey, said: "We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers."

News Corporation (ASX: NWS)

The News Corporation share price is up almost 4% to $43.70. This morning, the media giant released its third-quarter update and reported a 9% jump in third quarter revenue to US$2.19 billion. Growing at a stronger rate was its net income from continuing operations, which increased 13% to US$121 million. Management advised that News Corp's Digital Real Estate Services and Dow Jones segments helped drive its strong result. They both reported double-digit growth for the quarter.

REA Group Ltd (ASX: REA)

The REA Group share price is up 2% to $178.33. This has been driven by the release of the property listings company's third-quarter update. REA Group posted an 11% increase in revenue to $398 million and a 16% jump in EBITDA to $220 million. REA Group's CEO, Cameron McIntyre, said: "REA Group's third quarter performance reflects our focus on enhancing our immersive consumer experiences, and increasing the value delivered to customers. The result was underpinned by double digit revenue growth across our Australian businesses and strong double-digit yield growth in our core residential business."

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 3% to $28.26. This appears to have been driven by a broker note out of Bell Potter. This morning, the broker upgraded the enterprise software provider's shares to a buy rating with an improved price target of $31.75. Bell Potter said: "Technology One announced a new contract with James Cook University (JCU) last month which in our view is significant from a product perspective. […] On the back of this contract win and clear demonstration of "the power of Plus" we have modestly increased our ARR forecasts in each period."

The post Why Block, News Corp, REA Group, and TechnologyOne shares are storming higher today appeared first on The Motley Fool Australia.

Two of the blue-chip ASX shares are outpacing the 1.6% losses posted by the S&P/ASX 200 Index (ASX: XJO) as we head into the Friday lunch hour, while one is trailing that performance.

Here's what's happening.

Macquarie shares slide following Thursday's record close

After notching a new all-time closing high yesterday, Macquarie shares are down 2.2% at the time of writing, trading for $236.45 apiece.

Investors are pressuring the ASX 200 diversified financial stock despite the company reporting some strong full-year FY 2026 results.

For the 12 months to 31 March, Macquarie achieved growth across all of its operating groups.

This saw the company post a 30% year-on-year increase in net profit after tax (NPAT) to $4.85 billion. The second half of the financial year was particularly strong, with Macquarie reporting H2 NPAT of $3.19 billion, up 93% from the first half.

On the passive income front, management declared a final partly franked dividend of $4.20 per share, up 7.7% from last year's final dividend.

Commenting on the results that have yet to boost Macquarie shares today, CEO Shemara Wikramanayake said:

Each of our businesses used its specialist expertise in navigating the current environment, identifying opportunities that support long-term growth and delivering positive outcomes for our clients and communities

Block shares charge higher on rising profits

Also grabbing headlines and bucking the broader market sell-down today, Block shares are up 5.1% at the time of writing, changing hands for $103.38 each.

Investors are bidding up the ASX 200 buy now, pay later (BNPL) company, which acquired Afterpay in 2022, following the release of its first-quarter update (Q1 2026).

Highlights for the first quarter included a 5% year-on-year increase in net revenue to US$6.06 billion. And Block's adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) hit a record US$1.01 billion for the quarter.

On the bottom line, Block's gross profit was up 27% from Q1 2025 to US$2.91 billion.

"We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers," Block CEO Jack Dorsey said.

Which brings us to…

QBE shares slip on Q1 update

Joining Block and Macquarie shares in turning heads today, QBE also released its first-quarter update this morning.

Shares in the ASX 200 insurance giant are modestly outpacing the losses on the benchmark index today, down 1.4% at $22.33 apiece.

Highlights for the quarter include an 11% year-on-year increase in QBE's gross written premium (GWP), or 7% on a constant currency basis.

The insurer reported total funds under management of $36.1 billion at the end of the quarter.

And with interest rates on the rise, QBE's core fixed income yield increased to 4.1% over Q1. That's up from an average of 3.7% achieved in FY 2025.

The post Why QBE, Block and Macquarie shares are grabbing headlines on Friday appeared first on The Motley Fool Australia.

At the time of writing, the Cash App and Square owner's shares are up over 6% to $104.87.

What is lifting Block shares today?

Investors have been fighting to get hold of the payments company's shares following the release of a strong quarterly result.

According to the release, Block delivered gross profit of US$2.91 billion for the first quarter of 2026. This was up 27% year on year.

This was driven by strong growth across Cash App and Square, with Cash App gross profit up 38% to US$1.91 billion and Square gross profit up 9% to US$982 million.

Growing at a strong rate was its reported adjusted operating income. It came in at US$728 million for the quarter, representing a margin of 25%. This was a record result for the company and up 56% on the prior corresponding period.

Adjusted EBITDA also reached a record US$1.01 billion, while adjusted diluted earnings per share increased 52% year on year to US$0.85.

Cash App continues to grow

Cash App was a major driver of the result.

Its gross profit increased 38% year on year, supported by strong growth in Cash App Borrow, Afterpay buy now pay later products, and Cash App Card.

Cash App consumer lending origination volume surged 82% year on year to US$17.6 billion, while Primary Banking Actives increased 18% to 9.7 million in March.

Square momentum improves

The Square business also delivered an improved performance.

Square gross payment volume (GPV) increased 13% year on year to US$61.2 billion, with international GPV up 35%.

Management said growth was supported by strong new seller acquisition, field sales investments, and momentum among larger merchants.

Outlook

Commenting on the quarter and its outlook, Block's CEO, Jack Dorsey, said:

We continued to deliver strong financial performance in the first quarter as AI became more central to how Block operates and what we build for customers. We exceeded our guidance across gross profit, Adjusted Operating Income, and Adjusted EPS. We are raising our full year outlook and now expect gross profit growth of 19% in 2026, along with margin expansion and Adjusted Diluted EPS growth of 62%.

Speaking about the use of AI at Block, Dorsey adds:

Our roadmap is differentiated because it connects AI directly to the financial decisions customers and sellers already make every day. Internally, AI is helping us move faster and improve quality. Externally, it is helping us build products that act earlier for customers and sellers. We are building tools that absorb complexity for people rather than just helping them manage it. That is the shift we believe few companies are ready to deliver. We are.

The post Afterpay and Square owner Block shares jump 6% on strong results appeared first on The Motley Fool Australia.

What did Block report?

• Gross profit grew 27% year-over-year to US$2.91 billion
• Adjusted operating income jumped 56% to US$728 million (25% margin)
• Adjusted diluted EPS rose 52% to US$0.85
• Total net revenue reached US$6.06 billion
• Cash App gross profit increased 38% to US$1.91 billion, while Square grew 9% to US$982 million
• Operating loss was US$172 million, impacted by US$852 million in restructuring and legal costs

What else do investors need to know?

Block accelerated its AI-driven productivity, with "Builderbot" and "Moneybot" tools now reviewing most production code changes and making customer recommendations. As a result, employee output is up and system reliability has improved. The company is also scaling new features, like Cash App managed accounts for children and community engagement tools through Neighborhoods, both showing early adoption.

The company's lending portfolio continued to expand, with consumer lending origination volumes up 82% and Cash App Borrow originations nearly tripling year on year. Importantly, Block increased share repurchases to US$636 million in Q1, with US$4.7 billion remaining authorised.

What's next for Block?

Block has lifted its 2026 guidance, now targeting gross profit of US$12.33 billion, up 19% year on year, and adjusted operating income margin of 27%. Adjusted diluted EPS is forecast to jump 62% to US$3.85. For the June quarter, Block expects another 20% gross profit growth and Adjusted EPS of US$0.86.

The business is committed to growing through AI-powered innovation, strengthening its lending offerings, and investing further in high-return areas like sales and customer engagement. Management expects further margin expansion while funding long-term growth.

Block share price snapshot

Over the past 12 months, Block shares have risen 31%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Block shares: Profit jumps 27% as outlook upgraded appeared first on The Motley Fool Australia.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to sink on Friday following a poor night of trade in the United States. According to the latest SPI futures, the ASX 200 is expected to open 136 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 0.65%, the S&P 500 fell 0.4%, and the Nasdaq edged 0.1% lower.

Oil prices mixed

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) will be on watch on Friday after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 0.9% to US$95.91 a barrel and the Brent crude oil price is down 0.1% to US$101.11 a barrel. Traders appear to be waiting to hear if the US and Iran sign a peace deal.

Major ASX 200 share updates

A number of ASX 200 shares will be on watch when they release their latest updates on Friday. Among the companies that are due to release updates are investment bank Macquarie Group Ltd (ASX: MQG), property listings company REA Group Ltd (ASX: REA), insurer QBE Insurance Group Ltd (ASX: QBE), and payments leader Block Inc. (ASX: XYZ).

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Newmont Corporation (ASX: NEM) could have a good finish to the week after the gold price pushed higher overnight. According to CNBC, the gold futures price is up 0.65% to US$4,724.1 an ounce. This has been driven by optimism that interest rate hikes will be avoided if a US-Iran peace deal is signed.

TechnologyOne shares upgraded

TechnologyOne Ltd (ASX: TNE) shares are undervalued according to analysts at Bell Potter. This morning, the broker has upgraded the enterprise software provider's shares to a buy rating with an improved price target of $31.75. It said: "Technology One announced a new contract with James Cook University (JCU) last month which in our view is significant from a product perspective. […] On the back of this contract win and clear demonstration of "the power of Plus" we have modestly increased our ARR forecasts in each period."

The post 5 things to watch on the ASX 200 on Friday appeared first on The Motley Fool Australia.

Both Block Inc (ASX: XYZ) and Zip Co Ltd (ASX: ZIP) have jumped 17% or more over the past month at the time of writing. That's a sharp rebound, especially compared to the S&P/ASX 200 Index (ASX: XJO), which has risen around 2%.

So, is this the start of something bigger?

Block: scale and global reach

Block brings serious firepower to the table.

With a market capitalisation of around $55 billion, the fintech giant operates globally through its Square and Cash App ecosystems. These platforms serve both merchants and consumers, giving the business multiple revenue streams and growth pathways.

That diversification is a key strength. Block isn't just a buy now, pay later (BNPL) player, it's building a broad financial services ecosystem, particularly in the United States, a global leader in fintech innovation.

But it's not without challenges. Profitability has been uneven, and the ASX financial stock remains sensitive to consumer spending trends. Add in regulatory scrutiny around digital payments and BNPL, and there are still risks to navigate.

Even so, analysts remain broadly optimistic. Several brokers continue to rate the stock as a buy, pointing to long-term growth potential and a possible rebound as economic conditions stabilise.

The average 12-month price target sits at $163.67, implying around 57% upside from current levels of $97.56. The most bullish forecasts go as high as $226, suggesting a potential 131% gain.

Zip: high risk, high reward

This $14 billion ASX financial stock offers a different — and more volatile — investment case.

The company has built a well-known BNPL brand, particularly in Australia, and is now focused on improving margins and driving profitability.

Its strategy is clear: increase revenue per customer while tightening credit quality. If successful, that could transform Zip into a more sustainable and profitable business.

But execution is everything. Zip still needs to prove it can consistently deliver profits, and the competitive landscape remains intense. Regulatory uncertainty and changing consumer behaviour add further complexity.

Despite this, broker sentiment is surprisingly strong. According to TradingView data, all 11 analysts rate Zip as a buy or strong buy. That's a strong vote of confidence.

The numbers back that up. The average price target is $3.83, implying about 56% upside from current levels. The most optimistic forecasts stretch to $5.40, pointing to a potential 119% gain over the next year.

Foolish Takeaway

Both Block and Zip have staged impressive short-term rebounds, but their stories are far from identical. Block offers scale and diversification, while Zip provides higher-risk, higher-reward potential.

If market conditions improve, both could have further room to run. But investors should be prepared, volatility is likely to remain part of the journey.

The post These ASX financial stocks are bouncing, is it just the start? appeared first on The Motley Fool Australia.

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.