While cryptocurrencies can offer traders fast moves in either direction, the downward movement in prices in the past few months has scared off traders. But it hasn’t scared off investors looking to develop cryptocurrency-related products with a long-term view in mind.
In fact, a growing interest in crypto payments is fueling growth for a number of companies that might otherwise have faced declining growth rates.
One such company is
Block (SQ). Formerly Square, the company just reported a big beat on its earnings and revenue, with double-digit growth in its crypto payments space, mostly focused on Bitcoin.
The news helped shares bounce higher from a 52-week low hit last week. Shares are still down over 50 percent from their all-time highs last year. But with higher growth rates, shares have gone from trading at 185 times forward earnings a year ago to 52 times forward earnings.
Action to take: The company’s core cash payments business remains steady, and the added growth from cryptocurrency integration is still in its early stages, as are the benefits from earlier acquisitions. This could be a strong rebound play in the coming months as a result.
For traders, the July $140 calls, last going for about $6.25, offer a high-double to low-triple-digit upside from here should shares continue to move higher post-earnings in the coming weeks.
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 of the companies mentioned in this article.