Block (XYZ) shares rallied as much as 8% on Monday following news the financial technology company will join the S&P 500 Index ($SPX) on July 23.
Founded by Jack Dorsey in 2009, the New York Stock Exchange-listed firm will replace Hess in the benchmark index after Chevron (CVX) completed its $53 billion acquisition of the global independent energy firm on July 18.
Including today’s gain, Block stock is up roughly 75% versus its year-to-date low set in early May.
Significance of S&P 500 Inclusion for Block Stock
Investors are cheering the announcement as index inclusion reinforces XYZ’s status as one of the most influential U.S. companies.
Joining the S&P 500 will boost both demand and liquidity for Block shares as funds, including ETFs, that track the benchmark index must now invest in them.
According to experts, indexers may need to buy millions of XYZ shares, a powerful tailwind that could drive sustained momentum in the fintech stock.
Simply put, becoming a part of the benchmark S&P 500 Index increases Block’s visibility among institutional investors and validates its central role in reshaping digital finance.
Baird Says XYZ Stock Has More Room to the Upside
Index inclusion news made Baird analysts reiterate their “Outperform” rating on XYZ shares as well.
On Monday, the investment firm raised its price target on Block stock to $84, indicating potential upside of about 15% from its previous close.
Analysts believe that Block stands to benefit from continued momentum in cryptocurrencies as well, given it currently has more than 8,500 Bitcoin (BTCUSD) on its balance sheet.
Block has also built a robust ecosystem around crypto, including its Bitkey self-custody wallet and integration of the Lightning Network for faster, low-cost Bitcoin payments, which may help drive its share price up in the second half of 2025.
Other Wall Street Firms Disagree with Baird on Block
While index inclusion evidently is a majorly positive development for Block shares, other Wall Street analysts believe much of the related upside is already priced into XYZ stock.
According to Barchart, the consensus rating on Block remains at “Moderate Buy” but the mean target of about $68 indicates potential downside of more than 10% from current levels.
