Shares of fintech firm Block Inc. surged 7.7% on Monday trading open, after S&P Dow Jones Indices announced the company’s inclusion in the S&P 500 benchmark.
The move marks a significant milestone for the payments company co-founded by Jack Dorsey and signals a broader recognition of digital finance’s growing role in the US economy.
Block, formerly known as Square, will replace Hess Corp. in the index following the latter’s $55 billion merger with Chevron.
The change will take effect before trading opens on Wednesday.
Inclusion of XYZ stock to spark buying activity, analysts raise PTs
The inclusion is expected to spark significant buying activity, as index-tracking funds adjust their holdings to mirror the composition of the S&P 500.
According to J.P. Morgan, Block’s addition could drive net indexer demand of 54.2 million shares.
“We believe XYZ (Block) deserves a higher multiple given recent momentum around product velocity and marketing efforts, and joining S&P 500 helps,” the brokerage said.
It raised the price target of Block from $60 per share to $90 per share while keeping an overweight rating.
Block’s inclusion also deepens its visibility among institutional investors, many of whom track or benchmark against the S&P 500.
Analysts say the development could accelerate Bitcoin’s mainstream adoption, as Block currently holds over 8,500 Bitcoins—worth more than $1 billion—on its balance sheet.
Purchased at an average price of $30,405, the firm has booked significant unrealized gains of nearly 300%.
“Joining the S&P 500 helps reinforce Block’s profile as a leading innovator in digital payments and crypto infrastructure,” Jefferies analysts said Monday, as they raised their price target on the stock from $75 to $90.
The brokerage maintained its “buy” rating, citing growth in gross payment volume and Cash App user engagement as key tailwinds.
Deutsche Bank also reaffirmed its bullish stance, highlighting expectations of a “re-acceleration” in Cash App activity and strong volume growth in the next quarter.
Regulatory clarity fuels crypto optimism
The company stands to benefit from a shifting regulatory landscape.
On Friday, US President Donald Trump signed legislation providing a framework for dollar-pegged stablecoins, a move that industry advocates say could make digital assets a more routine part of financial transactions.
This regulatory clarity may further support Block’s ambitions in integrating crypto with traditional payment rails.
Despite recent gains, Block shares are down around 14% for the year through the previous close, lagging the S&P 500’s 7% gain.
Analysts suggest that recent momentum in product innovation and favorable policy changes could help reverse that underperformance in the months ahead.
Fintech enters the mainstream
With a market capitalization of $44.8 billion, Block’s elevation to the index places it among the most influential players in the fintech landscape.
The company’s core services—ranging from point-of-sale systems to peer-to-peer transfers and cryptocurrency offerings—have grown steadily in popularity.
Founded in 2009, Block changed its name in 2021 to reflect an expanding focus on blockchain technology.
Its Cash App service, which enables seamless peer-to-peer payments, has emerged as a key driver of customer engagement and transaction volume.
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