Blocks plummet 20% when Cash App Miss triggers a downgrade

block Stocks were on track on the second day on Friday, plummeting more than 20% as investors digested a wave of analyst disparity around a brutal quarterly reports and one issue. Cash app.

Q1 revenue rattled Miss Wall Street, urging several companies, including Wells Fargo, Seaport, BMO and Benchmark, to downgrade their inventory overnight. It has flagged new concerns about the growing user of stagnant cash apps, calming consumer demand, and a soft macro environment that could place emphasis on monetization.

“The stagnation in the number of active users in the app is even more concerning than a decrease in user spending,” the benchmark wrote in its note, downgraded the block that holds it.

Financial services companies have missed out on revenue, gross profits and payment volumes across the board, citing macro uncertainty, lower consumer spending and lower than expected inflows during the usual strong tax refund season, cutting year-round guidance.

“We just don’t think we were focused enough and we were paying enough attention to networks and network density. That’s what we’re based on,” CEO Jack Dorsey said in a revenue call. “Of course, we want to deepen our engagement with our customers through banking services. We definitely need to continue growing our network at the same time.