Block Inc - Time to Buy with 150% Upside or Wait (Update)Is one of the leading fintechs Block cheap enough with the current 77% plunge to start buying its shares or the long term investors should wait just a little longer?
Fundamental indicators: :
Revenue and Profits - although revenue grows exponentially the company is not making any profits
Liabilities - no problems with debt
This is an update to the previous scenario (attached below).
Technical Analysis (Elliott Waves):
The overall wave count is quite clear and typical to all the growth companies at their infancy stage, just look at Amazon in the early years and you will see similar structure
The initial impulse with 5 wave structure completed in August 2021 and we are observing the development of what looks like an ABC correction
An impulse of wave A is currently wrapping up and the price may go a little lower to $50-60 area
Once wave A is completed we can expect bounce to the region of $150 - 175 making an attractive 150% upside
However, this is a highly speculative scenario and would not be suitable for long term investors given the looming troubles in the economy and poor fundamentals of the company.
What do you think about this scenario for Block ?
Please share your thoughts in the comments and like this idea if you agree wit it.
Also let me know if you would like to see other stocks analysed using Elliott Waves.
Thanks
