Strong Momentum in Block (XYZ)’s Square and Cash App Segments Drives UBS’ Bullish Stance

Block, Inc. (NYSE:XYZ) is one of the 15 best AI stocks to watch in December 2025.

On December 3, 2025, UBS analyst Timothy Chiodo reiterated his “Buy” rating on Block, Inc. (NYSE:XYZ) with a $90 price target. The analyst’s bullish stance reflects sustained momentum across both the Square and Cash App ecosystems.

Despite seasonal trends pointing to some Gross Payment Volume (GPV) deceleration, Block, Inc. (NYSE:XYZ) reiterated its Q4 2025 outlook, which translates into strong gross profit and adjusted operating income growth. Within the Square ecosystem, the analyst sees further domestic and international scaling potential as expanded investments in telesales and field sales continue to generate strong returns.

Moving on to the Cash App ecosystem, the analyst sees it as a key growth driver, with management further bolstering his optimism by projecting a mid-teen gross profit CAGR over the next three years. Moreover, rising active users and deeper monetization across bitcoin offerings and pre-purchase BNPL features continue to drive growth expectations. The analyst also highlighted Block, Inc. (NYSE:XYZ)’s ability to enhance consumer spending flexibility and apply internal data to strengthen underwriting.

Meanwhile, Block, Inc. (NYSE:XYZ) shared its longer-term guidance for key business performance metrics on November 19, 2025. Projecting mid-teens annual gross profit growth through 2028, the company projects it will reach $15.8 billion. At the same time, it projected an approximately 30% annual growth in adjusted operating income and adjusted EPS. Furthermore, management believes the company will achieve the Rule of 40 in 2026. By 2028, non-GAAP cash flow is expected to reach 25% of gross profit, or more than $4.0 billion on a non-GAAP cash flow basis.

Block, Inc. (NYSE:XYZ) also boosted its share repurchase program by $5 billion, which reflects leadership’s confidence in the company’s financial trajectory.

Block, Inc. (NYSE:XYZ) leverages Artificial Intelligence (AI) to develop technology that broadens economic access through Square, Cash App, Afterpay, Bitkey, and Proto. It supports global commerce, financial services, digital payments, and bitcoin innovation.

While we acknowledge the potential of XYZ as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.