The stock market has been off to a hot start to 2023 as the S&P 500 is already up nearly 6% this year. Many growth stocks that took a pummeling last year have been rising to start off the new year.
One of those stocks has been Block (NYSE:SQ), the fintech company known for its convenient and easy-to-use Square terminals. Year to date, its shares are up around 18%, which is still not enough to offset the 61% losses it incurred in 2022, but it’s a good start.
And the stock could climb on its recent momentum as it recently made a bullish crossover with its 50-day moving average rising above the 200-day moving average, which is known as a “golden cross.” With the positive crossover, this could trigger more buying as technical indicators may give investors more of a reason to invest in the stock. Bitcoin has also been rising sharply this year, and that can also mean better results for Block, as bitcoin-related revenue makes up a significant portion of its operations.
Square releases its latest earnings numbers later this week and so it won’t be too long before investors get an updated look at how the business is doing. Over trailing 12 months, the company has reported revenue of just under $17 billion and a net loss of $503.8 million.
Investing in Block can be a great way to bet on either cryptocurrencies or the economy as a whole. The company has a lot of potential, but Block’s recent net losses are concerning and investors may want to wait until after the company’s earnings numbers come out before making a decision on the stock.