Fintech Milestone: Block (XYZ) Added to S&P 500, JPMorgan Sees Valuation Upside

TradingKey - On Monday, July 21, Block (XYZ) — the fintech company formerly known as Square — surged 7.22%, closing at $78.08, after being confirmed for inclusion in the S&P 500 Index.

The stock rose as much as 9% intraday, reflecting strong investor enthusiasm over its upcoming index debut.

A New Chapter Begins on Wednesday

Block’s addition to the S&P 500 will take effect before U.S. markets open on Wednesday, July 23, replacing Hess Corporation, which was acquired by Chevron.

Founded by billionaire Jack Dorsey, Block has evolved from a payment processor into a full-service financial technology platform offering:

• Peer-to-peer payments (Cash App)
• Merchant services
• Consumer lending
• Bitcoin trading and crypto-focused features

Its inclusion in the S&P 500 is widely seen as a milestone for the fintech and digital payments sector, signaling that digital finance apps are now mainstream — and increasingly challenging traditional banking models.

It also highlights the growing momentum behind crypto-enabled payments, especially amid the Trump administration’s push to expand cryptocurrency use in everyday transactions.

Wall Street Upgrades Target Prices

JPMorgan analysts said that inclusion in the S&P 500 will bring higher visibility, increased passive fund inflows, and improved valuation multiples — particularly given Block’s recent product enhancements and marketing efforts.

In response to the news:

• JPMorgan maintained its “Buy” rating and raised its price target from $60 to $90
• Baird also kept a “Buy” rating, lifting its target from $76 to $84

Analysts noted that the move could attract billions in passive investment flows, as index-tracking funds rebalance to include Block.