Will Toast Stock Ever Be Worth More Than Block?
When Block (NYSE: XYZ), which was formally known as Square, first introduced its credit card reader for mobile devices in 2009, it was a game changer. Businesses no longer needed anything special to adapt to the fast-changing payments space. With just a phone or tablet, they could accept digital payments, modernizing operations overnight.Block has expanded into many things since then and is now valued at more than $40 billion. That's nothing to sneeze at. However, recent developments make me question how fast it will continue to appreciate in value. Because of this, I believe it's possible that relative newcomer Toast (NYSE: TOST) could become a more valuable company within five years. Here's why.As a longtime shareholder, I've grown increasingly unclear as to what Block's long-term vision is. At one point, it was quite clear: It had a segment targeting consumers with Cash App and a segment targeting businesses with Square. The company was actively launching new software products for both. But now, with its music platform, Tidal, and with Bitkey and Proto centered around Bitcoin, I'm not sure what it's truly focused on and what the upside is.Continue reading
When Block (NYSE: XYZ), which was formally known as Square, first introduced its credit card reader for mobile devices in 2009, it was a game changer. Businesses no longer needed anything special to adapt to the fast-changing payments space. With just a phone or tablet, they could accept digital payments, modernizing operations overnight.
Block has expanded into many things since then and is now valued at more than $40 billion. That's nothing to sneeze at. However, recent developments make me question how fast it will continue to appreciate in value. Because of this, I believe it's possible that relative newcomer Toast (NYSE: TOST) could become a more valuable company within five years. Here's why.
As a longtime shareholder, I've grown increasingly unclear as to what Block's long-term vision is. At one point, it was quite clear: It had a segment targeting consumers with Cash App and a segment targeting businesses with Square. The company was actively launching new software products for both. But now, with its music platform, Tidal, and with Bitkey and Proto centered around Bitcoin, I'm not sure what it's truly focused on and what the upside is.
