It’s been a long way down for former market darling Block (NYSE:SQ). Block stock soared during the pandemic as merchants and consumers were forced to switch to digital payments because of lockdowns. In just 18 months shares soared nearly 600%, but it was short-lived. Investors saw the fintech stock lose almost 90% of its value from peak to trough just two years later.
A reopened economy, risky bets on cryptocurrency, the speculative acquisition of buy now, pay later outfit Afterpay, and a withering short-sellers report brought Block’s stock back down to Earth. As the stock gains momentum again, investors need to ask whether the ongoing risks outweigh the potential reward.
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