New York, Jan 21, 2026, 05:04 EST — Premarket
Block Inc shares edged up roughly 0.3% to $62.82 in early trading Wednesday, bouncing back slightly after falling 5% to $62.63 the day before. StockAnalysis
U.S. stocks took a hit Tuesday, suffering their steepest one-day drop in three months after President Donald Trump renewed tariff threats targeting Europe, rattling risk appetite. The S&P 500 fell 2.06%, while the Nasdaq slid 2.39%. Jamie Cox, managing partner at Harris Financial Group, noted, “I’m not at the point yet … will precipitate a correction in equities.” Reuters
This hits Block hard since it handles consumer spending, small-business payments, and short-term credit. Traders usually dump higher-volatility stocks like this early when markets shift defensive.
Block announced Tuesday it has extended over $200 billion in credit through Cash App Borrow, Afterpay, and Square Loans, maintaining steady loss rates since 2013. Cash App’s underwriting relies on a proprietary score derived from user activity. Cash App Borrow loans average just 21 days, with a 97% repayment rate, the company noted. Afterpay sees 96% of installments paid on time, while Square Loans keep loss rates under 3%. “Traditional lenders use scale to be more selective; we use it to be more inclusive while managing risk responsibly,” said risk lead Brian Boates. investors.block.xyz
Afterpay offers a buy now, pay later option, allowing customers to break their purchases into installments. FICO, a common consumer credit score, influences borrowing costs and access—lower scores typically mean higher rates or tougher approvals.
Hitting the lending milestone signals confidence from management, but it also refocuses attention on credit performance. Investors will be watching closely to see if repayments remain steady should the economy weaken and borrowing strains increase.
Block is competing in a packed space. Cash App and Afterpay run up against consumer fintech and BNPL companies like PayPal and Affirm, while Square goes head-to-head with payments processors and point-of-sale providers battling for merchant business.
However, higher lending volumes carry risks. If delinquencies rise or small businesses pull back, the idea of “stable loss rates” could come under threat, potentially weighing on the shares once more.
Block’s quarterly earnings are due Feb. 19, with investors keen to see how Cash App Borrow is holding up, how Afterpay repayments are trending, and what’s happening with Square’s payment volume. investing.com
