Here's why the Block share price is being smashed today

Block's shares are having a forgettable day…

| More on:
A man in a suit face palms at the downturn happening with shares today.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

It has been another day to forget for the Block Inc (ASX: SQ2) share price on Friday.

In morning trade, the payments company's shares have dropped 10% to $83.52.

This means the Block share price is now down over 50% since commencing trade on the ASX in mid-January.

Why is the Block share price falling?

As many readers will be aware, the locally listed Block shares are inextricably linked to the company's shares on Wall Street.

So, when the Block share price tumbles in the United States, its ASX listed shares follow suit the following session.

And how the Block share price has tumbled on Wall Street in recent sessions!

After closing at US$61.50 on Tuesday night, the company's shares have dropped over 9% to US$55.93 at last night's close.

This follows a selloff of tech stocks amid news that the US Federal Reserve has made another major increase to interest rates and plans more aggressive hikes in the coming months.

Not only have rising interest rates put pressure on tech valuations, but they have also sparked fears that a recession could be just around the corner.

This has rubbed off on locally listed tech shares. The likes of Xero Limited (ASX: XRO) and Zip Co Ltd (ASX: ZIP) have both fallen heavily this morning. This has led to the S&P ASX All Technology index sinking a disappointing 3.5% on Friday.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Technology Shares

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Technology Shares

DroneShield shares sink 7% despite big news

Let's see what's going on with this market darling on Thursday.

Read more »

A man activates an arrow shooting up into a cloud sign on his iPad.
Technology Shares

Up 25% since April, is it too late to buy Xero shares today?

A leading expert gives his verdict on the growth outlook for Xero shares.

Read more »

Man looking at digital holograms of graphs, charts, and data.
Technology Shares

2 amazing ASX tech shares I wish I'd bought last year

These tech companies are among the world’s best companies.

Read more »

A man in a business suit and tie places three wooden blocks with the numbers 1, 2, and 3 on them on top of each other.
Broker Notes

3 reasons to buy this booming ASX All Ords tech stock today

A leading broker forecasts more gains to come from this surging ASX All Ords tech stock.

Read more »

Man ponders a receipt as he looks at his laptop.
Technology Shares

Brokers rerate 3 leading ASX 200 tech stocks

Experts reveal their ratings on the ASX 200 tech sector's three biggest companies.

Read more »

Hologram of a man next to a human robot, symbolising artificial intelligence.
AI Stocks

Why Macquarie forecasts a big rebound for these 2 quality ASX All Ords tech stocks

Macquarie expects a big rebound is coming for these AI linked, ASX All Ords tech stocks.

Read more »

A young man goes over his finances and investment portfolio at home.
Technology Shares

Is it too late to buy DroneShield shares?

This high-flying stock is up 90% since this time last month. Where next? Let's find out.

Read more »

A frustrated male investor frowns with his hands and arms open asking why the share price has dropped today.
Technology Shares

Why this high-flying ASX 200 tech stock just got downgraded

Let's see which stock has been hit with a downgrade today.

Read more »