Block Inc. released a three-year financial outlook, and the stock price rose by 8%.

According to a report by The Block on November 20, Deep Tide TechFlow announced that Block, formerly known as Square, provided an optimistic three-year financial outlook at its first investor day since 2022. It is expected that gross profit will rise to approximately $15.8 billion by 2028, with an adjusted operating income annual growth rate of about 30%, exceeding $4.6 billion.

The company also announced an expansion of its stock buyback program, adding $5 billion in authorization to supplement the remaining $1.1 billion from before. After the announcement, Block's stock price was briefly halted from trading, and after resuming, it quickly rose by about 8% to $62.

Analysts are optimistic about Block's positioning in the shift of consumers towards fast, application-based lending tools, pointing out that the usage rate of Cash App loans has risen by 134%. They believe the company is undervalued, with a potential upside of over 40%.

In addition, Block continues to deepen its cryptocurrency payment business, with Cash App recently adding support for stablecoins and Bitcoin payments based on the Lightning Network, making the app more closely connected to the Square merchant network.