TLDR
- Block Inc (NYSE:SQ) will join the S&P 500 index on July 23, 2025, replacing Hess Corp after Chevron’s acquisition
- Stock initially jumped 10% on the inclusion announcement but later dropped 33% to $55.90 in after-hours trading
- JPMorgan raised Block’s price target to $90 from $60 following the S&P 500 news, maintaining an Overweight rating
- The company recently agreed to pay a $40 million regulatory fine for compliance failures
- Block announced a marketing campaign with Timothée Chalamet for Cash App and plans an Investor Day in 2025
Block Inc stock experienced extreme volatility after S&P Dow Jones Indices announced the fintech company would join the S&P 500 index. The inclusion takes effect before trading opens on Wednesday, July 23, 2025.
The stock initially surged 10% on the inclusion announcement. Index additions typically create buying pressure as funds tracking the S&P 500 must purchase shares of newly added companies.
Block replaces Hess Corp in the index following Chevron Corp’s acquisition of the oil company. The acquisition closed on July 18, prompting the index change.
However, the celebration was short-lived. Block’s stock price plummeted 33% in after-hours trading to $55.90 from the regular session close of $83.46.
The dramatic drop came directly after regular market hours. The extreme volatility likely reflects investor reactions to the inclusion news and broader market conditions.
Other fintech companies felt the impact of Block’s selection. Robinhood Markets Inc and Applovin Corp each fell approximately 1% as investors processed these companies being passed over for index inclusion.
JPMorgan responded positively to Block’s S&P 500 news. The investment bank raised its price target for Block to $90 from $60 while maintaining an Overweight rating.
Analyst Optimism
The price target increase reflects JPMorgan’s optimism about potential fund inflows. Greater market visibility from index inclusion also factored into the upgraded target.
Block’s year-to-date performance has been disappointing prior to this development. The stock was down about 14% before the S&P 500 announcement.
The company’s 52-week range spans from a low of $55.00 to a high of $99.26. The after-hours trading price hit the bottom of this range.
Block recently announced several corporate updates beyond the index inclusion. The company launched a marketing campaign featuring actor Timothée Chalamet for its Cash App product.
Recent Corporate Developments
The fintech firm also plans to host an Investor Day in 2025. This event will likely provide more details about the company’s strategic direction and financial outlook.
Block faced regulatory challenges recently. The company agreed to pay a $40 million fine to settle accusations regarding compliance failures.
Despite these headwinds, the S&P 500 inclusion represents a major milestone. Index membership often brings increased institutional ownership and broader market recognition.
The extreme price volatility demonstrates how quickly sentiment can shift in financial markets. Block’s stock moved from celebration to concern within hours of the announcement.
Block provides payment processing and financial services through products like Square and Cash App. The company serves millions of merchants and consumers globally.
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