Block Downgraded to Equal-Weight: Credit Risk and Competition Cap Upside

In a report examining why Block’s upside now looks more limited as credit risk, competition and reinvestment needs rise, the analysis argues that the risk/reward has become more balanced after a strong run of investor optimism. The central concern is the deliberate redesign of Cash App Borrow, which Block is migrating from four-week to six-week loans while holding borrowing limits per customer roughly constant as it tests the longer product.


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