MMR

2 Fintech Stocks in Focus After Earnings

TOST is trading at a fresh two-year high, while SQ is now below a key trendline

Digital Content Manager
Nov 8, 2024 at 10:45 AM
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Fintech stocks Block Inc (NYSE:SQ) and Toast Inc (NYSE:TOST) are staging opposite post-earnings reactions this morning. While the former beat earnings expectations for the third quarter, revenue came short of analysts' estimates. Meanwhile, the latter's top- and bottom-lines beat estimates.

Block stock is down 7.7% to trade at $69.50 at last glance and now carries a 6.9% year-to-date deficit. Shares are on track for their worst single-day percentage loss since July 24 and are eyeing their third-straight weekly loss.

TOST was last seen up 9.4% to trade at a fresh two-year high of $35.68. The equity attracted no fewer than six-price target hikes, including one from Morgan Stanley to $45 from $33. Shares are now eyeing their fourth-straight win and best day since May 8. So far this year, the stock added 96%.

Both equities are getting blasted in the options pits today, with 35,000 calls and 28,000 puts exchanged so far for SQ -- triple the intraday average volume -- and positions being bought to open at the most active contract, which is the weekly 11/8 72-strike put. TOST has seen 21,000 calls traded, or 10 times the volume typically seen at this point, with new positions being opened at the weekly 11/8 33-strike call, which is also leading the charge.

 

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