The Block Inc (ASX: SQ2) share price is having a tough day on the ASX market today.
The company's share price is currently trading at $115.32, a 4.33% fall from Wednesday's close. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 0.97% today.
There's no price-sensitive news released by the company today, so what could be impacting the Block share price?
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US listing falls
Block shares appear to be following a similar trend to the company's New York Stock Exchange listing today. Block Inc (NYSE: SQ) tumbled 6.4% in the United States on Wednesday. In after hours trade, the NYSE listing is slipping a further 0.62%.
But Block shares are not the only buy now, pay later (BNPL) shares suffering on the ASX today.
Zip Co Ltd (ASX: ZIP) shares are also sliding 3%, while Sezzle Inc (ASX: SZL) shares are down 2.88%. The S&P/ASX All Technology Index (ASX: XTX) is 1.74% in the red today.
Block shares fell after the Wall Street Journal expressed a dire outlook for large players in the BNPL space. The WSJ said:
Late payments or related losses are piling up for the industry's biggest players Affirm, AfterPay and Zip Co. Their borrowing costs, meanwhile, are rising.
Further, the WSJ highlighted that BNPL companies relied on credit lines impacted by interest rates, which are rising. The publication added:
Investors, once enamored with the business, are backing away. The young industry finds itself in a tricky spot at a time when the economy is slowing and, some fear, headed for a recession.
Block acquired Afterpay shares earlier this year and listed on the ASX as Block on the first day of February.
Block share price snapshot
The Block share price has fallen 35% on the ASX in the year to date, while it is down 20% in the past month alone. In the last week, Block shares have descended by more than 5%.
For perspective, the benchmark ASX 200 index has slid nearly 4% in the year to date.
Block has a market capitalisation of about $5 billion based on the current share price.
