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Why is the Block share price charging 10% higher on Thursday?

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The Block Inc (ASX: SQ2) share price is soaring today, following in the footsteps of its US listing.

The ASX buy now pay later (BNPL) company’s share price is up 10.18%, trading at $127.57 at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is currently 0.28% higher.

Let’s take a look at why the Block share price is rising today?

Block is not the only BNPL company in the green today. The Zip Co Ltd (ASX: ZIP) share price is up 6.79%, while Sezzle Inc (ASX: SZL) shares are 7.34% higher.

Block’s ASX listing appears to be following a similar path to the company’s US listing on Wednesday. Block Inc (NYSE: SQ) shares leapt 11.35% on the New York Stock Exchange overnight.

Financial and technology shares lifted after PayPal’s results improved optimism, Reuters reported. The NASDAQ Composite Index jumped 2.59%, while the S&P 500 Index gained 1.56%.

Wedbush Securities managing director Sahak Manuelian said in comments cited by the publication:

We’re going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we’re seeing a lot of better-than-feared prints, and that’s just good enough right now.

PayPal Holding Inc (NASDAQ: PYPL) reported net revenue lifted 9% year on year to $6.8 billion. The company also confirmed Elliott Investment Management has a $2 billion stake in the company. PayPal shares lifted 9% on the back of the results.

In Australia, the S&P/ASX All Technology Index (ASX: XTX)is 2.85% higher so far today.

Block is due to report its financial results on 4 August, US time.

The Block share price has fallen 28% year to date, however, it has soared 44% in just the past month.

For perspective, the benchmark ASX 200 Index has shed 6% in 2022 so far.

Block has a market capitalisation of about $4.8 billion based on the current share price.

Source: Read More

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