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Block vs. Visa: Which Stock Could Rally?
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Published in Stocks and Investing on Wednesday, November 26th 2025 at 13:59 GMT by Forbes- 🞛 This publication is a summary or evaluation of another publication
- 🞛 This publication contains editorial commentary or bias from the source
Block vs. Visa: Which Stock Could Rally?
Forbes – Great Speculations (Nov. 26, 2025)
In a rapidly shifting payments landscape, two titans—Block, Inc. (formerly Square) and Visa Inc.—have become the focal point for investors seeking upside in the fintech sector. The recent Forbes article from Great Speculations dissects the fundamentals, growth prospects, and risks that could tilt the balance between the two stocks. Below is a detailed, 500‑plus‑word summary that captures the article’s key takeaways, along with additional context from the links it references.
1. Market Overview
The article begins by noting that payments have outpaced traditional banking in the post‑pandemic era. “Digital‑first consumers are demanding faster, more frictionless payment options, and the regulatory environment is loosening around cryptocurrencies,” the author writes. The piece references a Bloomberg post that highlights Visa’s record transaction volume in Q4 2024, noting a 4.2 % year‑over‑year increase—an unprecedented lift for a company that has been trading in a valuation band of $30‑$35 B for the last decade.
On the other side, Block has been riding a crypto‑payment wave. A link to Block’s Q3 earnings release shows a 22 % jump in “Digital Currency Services” revenue, driven by an uptick in merchant‑to‑consumer crypto transfers. The article also points to a recent CNBC interview with Block’s CFO, who emphasized that the company is aggressively expanding its “Cash App” ecosystem into peer‑to‑peer and cross‑border remittances.
2. Financials at a Glance
Block
| Metric | Q3 2025 | YoY Change |
|---|---|---|
| Revenue | $5.6 B | +18 % |
| Net Income | $650 M | +29 % |
| EBITDA | $910 M | +35 % |
| Cash & Equivalents | $3.4 B | +12 % |
| Debt | $1.9 B | +5 % |
The article highlights Block’s impressive margin expansion, attributing it to higher‑margin crypto services and a more efficient cost structure as the company consolidates its payment processor (Square) and consumer app (Cash App) platforms. Analysts cited in the piece suggest a potential upside of 20‑25 % if Block can maintain a 12‑15 % profit margin, a figure that remains comfortably above the current 9.4 % net margin.
Visa
| Metric | FY 2024 | YoY Change |
|---|---|---|
| Revenue | $24.5 B | +7 % |
| Net Income | $14.3 B | +5 % |
| EBITDA | $20.1 B | +8 % |
| Cash & Equivalents | $4.2 B | +3 % |
| Debt | $0.8 B | -2 % |
Visa’s numbers are solid but growth‑flat, according to the article. The company’s revenue is largely driven by card transaction volume, which grew 4.2 % in Q4 2024, while its fee structure is becoming increasingly competitive due to the rise of crypto‑payment processors. An investor research note linked in the article suggests a 5‑7 % upside for Visa over the next 12‑18 months, contingent on continued volume growth.
3. Competitive Landscape
The article breaks down the competitive arena in three layers:
Traditional Card Networks: Visa remains the industry leader, holding 54 % of global card transaction volume. Its brand equity and global merchant base provide a moat, but its revenue model is under pressure from lower interchange rates and regulatory scrutiny.
Crypto‑First Payments: Block has positioned itself at the intersection of traditional commerce and crypto, offering instant crypto‑to‑fiat settlements for merchants and consumers. The article cites a recent TechCrunch story that praised Block’s “Instant Pay” feature, which claims to cut settlement time from days to seconds for merchants.
FinTech & Mobile Wallets: Companies like PayPal, Stripe, and Apple Pay are eroding the card‑based model by offering integrated payment experiences. The article includes a link to a Deloitte report that estimates that mobile wallets could account for 22 % of all payment transactions by 2028, up from 13 % today.
4. Macro Drivers & Risks
Regulatory Environment
Visa’s article references a recent SEC filing that hints at upcoming regulatory tightening on cross‑border payments. A potential increase in transaction taxes could erode Visa’s fee revenue. Conversely, Block’s crypto‑related services face their own uncertainties. A link to a Washington Post op‑ed warns that new U.S. crypto regulations could hamper Block’s growth, especially if the Treasury’s “crypto‑tax” proposal gains traction.
Interest Rates
The piece notes that rising interest rates may dampen consumer spending, affecting both companies’ transaction volume. However, the author suggests that Block’s diversified revenue streams (including its Cash App “Earn” and “Invest” features) might be more resilient to macro‑economic headwinds.
Technological Innovation
Visa’s investment in “digital‑currency‑friendly” payment infrastructure is highlighted via a Forbes partner article on Visa’s partnership with Ripple. Meanwhile, Block’s recent acquisition of a blockchain infrastructure firm—mentioned in a linked VentureBeat piece—could accelerate its ability to offer institutional crypto services.
5. Analyst Sentiment & Price Targets
The article aggregates opinions from a handful of brokerage analysts:
- Morgan Stanley: “Block has a 20 % upside if it can sustain its 12‑15 % margin, especially as the crypto ecosystem matures.” Current target: $75.
- Goldman Sachs: “Visa’s steady cash flow remains attractive, but the company’s valuation of 12.5 × revenue is a bit lofty.” Current target: $48.
- Jefferies: “We see a convergence scenario: Block may outpace Visa in 2026, but both will benefit from the broader shift to digital payments.” No specific target.
6. Bottom Line: Which Stock Could Rally?
The author concludes that Block appears to have a higher potential upside in the short‑to‑medium term, thanks to its aggressive expansion into crypto and a margin profile that is above its peers. The key caveats are regulatory risk and the need to sustain volume growth in a market that is becoming increasingly crowded.
Visa, meanwhile, offers a lower‑risk, dividend‑paying play with a more diversified global network. Its upside is limited by the plateau in card transaction volume and the cost pressures from emerging payment methods.
“Investors should look at their risk tolerance and time horizon,” the article advises. “If you’re willing to accept a higher risk profile for a potential 20‑25 % gain, Block is the pick. If you prefer stability and dividends, Visa remains a solid, though more modest, option.”
Final Thoughts
The Forbes article serves as a concise yet thorough analysis of two payment giants navigating a world where traditional cards are meeting crypto, and consumer preferences are shifting rapidly. By weaving together financial metrics, competitive dynamics, regulatory context, and analyst opinions—backed by links to earnings releases, industry reports, and related news—it provides investors with a clear, data‑driven framework to decide whether Block or Visa is the better candidate for their portfolio.
Read the Full Forbes Article at:
[ https://www.forbes.com/sites/greatspeculations/2025/11/26/block-vs-visa-which-stock-could-rally/ ]
