The recent market selloff took stocks into correction territory in the span of a few weeks. It’s the fifth-fastest selloff. And while stocks are looking to settle down now, if not rebound later in the year, some areas have fared worse than others.
Many widely-held tech names have seen their shares get cut by a quarter or even half over the past few months. However, that hasn’t changed their fundamentals.
For most companies, it could be a case of falling too far, too fast.
One such selloff play is payment company Block (XYZ). Formerly known as Square, Block has seen shares shed 25% in the past few months, and the stock is now flat over the past half year.
Yet revenues are up 5%, and earnings growth has been a staggering 1,803%. That means that this financial technology play trades at just 13 times earnings. That’s much more like a value play than a tech or even growth play.
Action to take: Value and growth investors alike may like shares as a rebound play in the months ahead, and shares are well off their all-time highs set in mid-2021.
For traders, the August $70 calls, last trading for about $5.55, could see mid-to-high double-digit returns on a rebound through the summer.
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.