Provides payment processing, financial services, and tools for businesses and individuals.Yahoo Finance ↗block.xyz ↗
2 takes · first discussed Feb 21, 2025 · last May 29, 2026
Every call, plotted at the price the day they made it.
Sacks argues Block's AI-attributed 50% headcount cut is pure AI washing — the company had severely overstaffed relative to peers during COVID and needed the cut for fundamental operational reasons, not because AI generated real efficiencies.
John Collison cites Square's 70% decline from its 2021 peak as evidence that fintech IPO valuations can badly hurt employees and shareholders, implicitly arguing the public-market path carries significant downside risk for fintech companies.
The two hosts who have commented on Block hold bearish views, though for different reasons. A guest (John Collison) highlighted the severe post-peak valuation declines of fintech peers like Square and PayPal as a cautionary tale about the downside risks of public-market fintech valuations for employees and shareholders. Sacks, separately, is skeptical of Block's more recent claim that AI drove a ~50% headcount reduction, arguing the cut was long overdue due to gross COVID-era overstaffing relative to peers — and that framing it as an AI efficiency gain amounts to "AI washing." Neither host offers a bullish counterpoint, leaving the overall collective stance clearly negative on Block, albeit focused on distinct concerns: structural valuation risk versus management credibility.
Sacks argues Block's AI-attributed 50% headcount cut is pure AI washing — the company had severely overstaffed relative to peers during COVID and needed the cut for fundamental operational reasons, not because AI generated real efficiencies.
within 24 hours, all the financial analysts on X said that Jack was AI washing and that Block had horribly overstaffed during COVID... running much more inefficiently than all of its other peers in this category, and they've needed to do a”1:17:21
John Collison cites Square's 70% decline from its 2021 peak as evidence that fintech IPO valuations can badly hurt employees and shareholders, implicitly arguing the public-market path carries significant downside risk for fintech companies.
Square, really great company, 70% off its 2021 peak, PayPal, 80% off their 2021 peak. If you're an employee and you joined those companies in 2021, it's not a great feeling.”1:39:56