Although the market is now trading back above the April 2 “Liberation Day” price point, many individual stocks have fared differently. Some have done better, and a few have done worse amid wildly swinging markets.
Earnings season is also giving companies the opportunity to provide key guidance on the impact that they see. And today’s tariff and trade war fears are also leading to some big swings – but also some potential big opportunities for daring buyers now.
One company that looks like the first big casualty of events is payment processing giant Block (XYZ). The fintech giant missed earnings by a whopping 40%. Worse, they lowered guidance for 2025.
That sent shares down about 20% on the day, adding to further weakness over the past few years.
However, Block share also trade at just 14 times earnings. Overall revenues are down just 3%. Improving trade conditions in the second half of the year could be setting shares up for a big win from here.
Action to take: Speculative investors may like Block shares here, or in the coming weeks as the stock likely forms a base to move higher from. Shares are now near a five-year low, and should see a recovery from here.
For traders, the June $50 calls, last trading for about $1.90, could see high double-digit returns or better on a push higher in shares over the coming weeks as a partial rebound from the earnings-day selloff.
Disclosure: The author of this article has a position in the company mentioned here, and may further trade after the next 72 hours. The author receives no compensation from any company mentioned in this article.