Block Inc - Time to Buy or Wait?

2022년 4월 29일

Is one of the leading fintechs Block cheap enough with the current 70% 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 sizable profits
  
• P/E - outrageously high at over 200, it is crying for correction
  
• Liabilities - no problems there
  

Technically:

• 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 February 2021 and we are observing the development of what looks like an Extended Flat
  
• Impulse in the wave C is typically very deep with 0.786 Fibonacci retracement or even deeper so the overall correction may go to $67 or deeper
  
• Wave 4 of C does not look completed yet and one of the potential scenarios may suggest a short term move towards $149 to finish it and then to continue descent
  

Do you think it's time to buy Block or there is more correction to follow or it is better to wait it out?

Please share your thoughts in the comments and like this idea if you would like to see more stocks analysed using Elliott Waves.

Thanks

2022년 5월 13일

노트

An update has been published