economy
This company made headlines for its aggressive AI-driven layoffs. Citi says it's paying off
The bank, which has buy rating on the fintech name, raised its price target on shares.
TL;DR
- Citi raised Block's price target to $100 from $85, implying 43% upside.
- Block is leveraging AI internally with tools like Goose, Builderbot, Moneybot, and Managerbot.
- These AI initiatives are expected to enhance user engagement, sustain gross product growth, and expand margins.
- Block shares have risen 33% in three months, boosted by AI adoption and a recent 24% staff layoff for automation.
- Citi maintains a buy rating on Block, aligning with the general Wall Street consensus of 37 buy or strong buy ratings out of 45 analysts.