Analyst says ‘it doesnt matter’ as Block reports Q4 BTC revenue

• Block reports a 7.0% decline in bitcoin revenue in the fourth quarter.
• Baird analyst David Corning shares his outlook on block stocks.
• Shares of financial technology companies are up 15% year-to-date.

Block Inc (NYSE: SQ) shares are trading after hours despite the financial technology firm reporting year-over-year declines in bitcoin earnings.

Baird analysts respond to quarterly updates

The San Francisco-based multinational company noted a 7.0% drop in Bitcoin revenue in the most recent quarter. CNBC’s “Closing Bell: OvertimeBaird Senior Analyst David Corning said:

Bitcoin mattered when Block was $250 a share. At $70, it doesn’t matter. 4.0% of gross profit. I hadn’t even looked at it closely, that’s how important it is.

BTC generated $35 million in gross profit for Block Inc in the fourth quarter. This was down 25% year-on-year, related to the slump in the Bitcoin price. As of December 31^stthe fair value of the company’s holdings of bitcoin was $133 million.

Corning remains bullish on block stocks

among them letter to shareholdersBlock revealed a $9 million impairment charge related to its BTC investment in the fourth quarter, compared to $2 million in the previous quarter alone.

Shares are still up, largely because former Twitter CEO Jack Dorsey’s company reported earnings for the entire quarter that were slightly above consensus. Baird Corning added:

Cash App has crushed it. They accelerated far up the street. January and his February trends are accelerating very nicely. Street modeling slowdown in Q1. So the stock should go up tomorrow.

His price target of $85 per share suggests the stock is up about 15% from where it ended today’s regular session. For the full year, Block Inc is currently claiming his adjusted EBITDA of $1.3 billion. Gross margin forecast is 25% compared to 22% in the most recent quarter.