The Block Inc (ASX: SQ2) share price is plunging today after a broker downgrade on the company's United States listing.
Block shares are currently trading at $139.14, a 6.53% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is 0.72% in the red at the time of writing.
Let's take a look at what could be weighing on the Block share price today.
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Broker downgrade
Block's ASX shares are following the pattern of the company's New York Stock Exchange (NYSE)-listed shares in US markets.
Susquehanna analyst James Friedman downgraded the target price of Block Inc (NYSE: SQ) from $240 to $140 – a 42% decrease. Though, Friedman maintained a positive rating on Block's US listing. Block fell 6.43% to $100.47 in the US on Tuesday.
Further to this, Credit Suisse analyst Timothy Chiodo dropped the price target on the US listing from $190 to $180 ahead of the company's quarterly results. Credit Suisse has maintained an outperform rating on the company's shares.
Block is not the only buy now, pay later (BNPL) share slipping on the ASX today. Zip Co Ltd (ASX: ZIP) shares are down 5.61%, while Beforepay Group Ltd (ASX: B4P) is 13.13% in the red. However, Openpay Group Ltd (ASX: OPY) is climbing 1.61%.
In recent news, Block CEO and chair Jack Dorsey changed his title from CEO, president and chairperson to "Block Head and Chairperson".
Dorsey is also the co-founder of Twitter, which Elon Musk has just taken over in a $60 billion deal.
The market is expecting Block to report its earnings in early May.
Block share price snapshot
The Block share price has fallen 21% on the ASX year to date, and it has dropped 21.8% in the past month alone. Block listed on the ASX as SQ2 on 1 February after taking over Afterpay.
For comparison, the ASX 200 has slid nearly 3% year to date.
Block has a market capitalisation of about $6.2 billion.
