Observed Signal · Jul 23, 2026 · Earnings Report · Source: CNBC Investing · Impact: 4/5 · Sentiment: Positive
Josh Brown Adds Jack Dorsey’s Block to Best Stocks
CNBC Pro contributors Josh Brown and Sean Russo placed Block (formerly Square) on their "Best Stocks" list despite past concerns about Jack Dorsey-led side projects. The column highlights Block's refocus on its core payments businesses (Square and Cash App), recent cost cuts including a ~40% workforce reduction, and improving Q1 results: Cash App gross profit rose 38% year-over-year to $1.91 billion, monthly active users hit 59 million, and hardware gross payment volume grew 13% to $61.2 billion. Management raised full-year 2026 guidance with gross profit of $12.33 billion, adjusted operating income of $3.34 billion, and adjusted EPS of $3.85. The piece also notes Block’s reported earlier involvement with a Stripe/Advent bid for PayPal, which could have strategic implications for the Cash App vs. Venmo competitive landscape.
Block's Q1 results and raised 2026 guidance, plus strategic moves (cost cuts and reported involvement in a potential PayPal bid), affect payments and commerce infrastructure relevant to digital transactions and competitive dynamics (Cash App vs. Venmo).
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Key Takeaways & Evidence Grounding
- Block (formerly Square) was added to Josh Brown and Sean Russo's "Best Stocks" list.
- Block laid off about 40% of its employees; headcount fell from over 10,000 to just under 6,000.
- In Q1 2026, Cash App gross profit grew 38% year-over-year to $1.91 billion; monthly active users reached 59 million; Cash App Borrow originations grew 175%.
- Block raised full-year 2026 guidance: gross profit $12.33 billion (up 19%), adjusted operating income $3.34 billion (27% margin), and adjusted EPS $3.85 (62% growth over 2025).
- Reports say Stripe and Advent International made a $60.50/share ($53.4B) offer for PayPal this month and Block reportedly contributed equity alongside them but exited before the final offer.
Connected Companies & Entities
10 Entities mapped“Dorsey’s other company, Square — now known as Block (XYZ) — was always a better opportunity....”
“that resulted in Block acquiring the streaming music service Tidal for $300 million — six times what Jay-Z had acquired it for in 2015....”
“paid up for buy now, pay later firm Afterpay at the top of the market...”
“Stripe and Advent International reportedly made a $60.50/share ($53.4B) offer for PayPal this month....”
“CNBC reported Block was contributing equity alongside Stripe and Advent, while Reuters reported Block approached PayPal with the group back ...”
“Stripe and Advent International reportedly made a $60.50/share ($53.4B) offer for PayPal this month....”
“Stripe and Advent International reportedly made a $60.50/share ($53.4B) offer for PayPal this month....”
“CNBC reported Block was contributing equity alongside Stripe and Advent, while Reuters reported Block approached PayPal with the group back ...”
“CNBC reported Block was contributing equity alongside Stripe and Advent, while Reuters reported Block approached PayPal with the group back ...”
Ontology Mapping & Concepts
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