Financial year 2022 (FY22) was a busy period for now S&P/ASX 200 Index (ASX: XJO) tech staple, Block Inc (ASX: SQ2) and its share price.
While the payment service provider didn't reach the Aussie market until January, it was the talk of the town for most of FY22 after announcing its plan to acquire former market darling and ASX buy now, pay later (BNPL) share Afterpay.
But between listing on the ASX and the end of FY22, the Block share price tumbled 48.7% to trade at $90.50.
For context, the ASX 200 slumped around 10% across the entirety of FY22.
Let's take a closer look at what happened to Block and its share price over the course of last financial year.
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What went wrong for the Block share price in FY22?
The Block share price first emerged on the ASX on 20 January, closing its first session at $176.63. Shares in the company hit the market after being issued to those previously invested in Afterpay.
Block proposed to take over the BNPL giant in August 2021, offering 0.375 Block (then Square) shares for each Afterpay stock to do so. The deal was valued at around $39 billion at the time.
However, that value tumbled alongside Block's US listing, Block Inc (NYSE: SQ)'s share price. It fell around 55% between the acquisition's proposal and its implementation.
Of course, the company also underwent a name change last financial year. Block was born from Square on 10 December. On announcing the switch, the company said:
The name has many associated meanings for the company — building blocks, neighbourhood blocks and their local businesses, communities coming together at block parties full of music, a blockchain, a section of code, and obstacles to overcome.
Finally, the most recent results released to the ASX from the payments and BNPL giant dropped in May.
Block's revenue fell 22% to US$3.96 billion in the first quarter. Though, when excluding revenue from Bitcoin (CRYPTO: BTC), it increased by 44%. The company's gross profit was also up 34% year-on-year, reaching US$1.29 billion.
However, it was likely a broader tech sell-off that damaged the Block share price most.
The S&P/ASX 200 Information Technology Index (ASX: XIJ) had a rough start to 2022 as uncertainty reigned. Then, tech stocks were once again among the hardest hit as inflation and resulting rate hikes kicked off.
The tech sector slipped around 40% over the course of FY22.
