Are you invested in Square stock or interested in learning more about the financial transactions at Square parent Block (SQ)? Federal prosecutors are currently investigating transactions at Square, including Cash App and bitcoin. This news has caused Square stock to tumble just a day before the first quarter Square earnings report.
According to a report from NBC news, prosecutors are looking into alleged compliance lapses at Square and Cash App, with unreported transactions involving credit card transactions, dollar transfers, and bitcoin. This investigation could potentially result in penalties for Block.
Despite these challenges, Square stock operates a digital payments ecosystem catering to both merchants and consumers. Analysts are eagerly awaiting the first quarter earnings report, expecting an 80% jump in adjusted profit to 72 cents per share and a 17% increase in revenue to $5.83 billion.
In addition to financial performance, analysts are closely monitoring key metrics such as gross profit and earnings before interest, taxes, depreciation, and amortization (EBITDA). Square stock currently holds an entry point from a cup base and is trading below its 50-day moving average.
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