There was a time, not long ago, when fintech company Block (SQ -5.92%) was a real star on the stock exchange. But that was before worries grew about the global economy, rising interest rates began to spook would-be borrowers, and investors started to bail from companies in (or adjacent to) the tech sector.
Compounding this dynamic, not one but two analysts in recent days downgraded their recommendations on Block stock. Consequently, as of Thursday’s market close, the company’s shares had declined by almost 14% so far this week, according to data compiled by S&P Global Market Intelligence.
The first of the two blows was the hardest, as it came from longtime Block bull Dan Dolev of Mizuho (MFG 1.30%). His new recommendation is neutral, down from the previous buy, a change accompanied by a steep price-target cut to $57 per share from $125.
Dolev’s move is based on a number of factors, specifically what he terms “user fatigue,” a decline in the growth of inflows, improving competition in the point-of-sale retail segment, and faulty execution with the fintech…