We’ve bought Block (SQ)

On Tuesday, we elected to initiate a new position in Block (SQ) on behalf of clients in our Flagship strategy. We also trimmed Exxon Mobil (XOM) and used the proceeds as a source of funds for Block.

Important to note: the results of the trade increased our net exposure by ~2.5%, bringing our strategy exposure back to 100% (i.e. 0% strategic cash) for the first time since December 2021.

We’re piloting a new process to highlight the research our Investment Team does on each position. You can check out the full memo for Block (SQ) linked below.

Full Block (SQ) memo here

Block trades

Block (formerly known as Square; NYSE: SQ) is a fintech company with two unique but complementary ecosystems - Square (Seller) and Cash App (Consumer) - focused on economic empowerment.

We currently estimate a 23% annualized return with a price target of $139 per share by year-end 2026.

Our investment thesis is underpinned by our view on one key debate: Can Block execute on its profitable growth strategy and achieve the “Rule of 40” by fiscal-year 2026?

The company defines the “Rule of 40” as [annual gross profit growth %] + [adjusted operating income margin %] at or above 40%.

We believe this is the key debate that will drive price action and dictate the investment outcome – and we believe the answer to this question is “yes”:

We have strong conviction that an investment in Block is an opportunity for Titan to purchase equity in an innovative company with a still largely untapped market and long runway for increasingly profitable growth.

You can also check out the full memo here.

Trimming Exxon

The energy giant, Exxon Mobil (XOM), has returned back to all-time highs following oil’s move back towards $90. The company’s extensive share buyback program has been constructive for the stock, and we elected to lock in gains by trimming our position by 60 bps. As a result of the trim, we were able to use the proceeds to fund our latest position in Block (SQ).

The results of the trade increased our net exposure by ~2.5%, bringing our strategy exposure back to 100% for the first time since December 2021. As always, let us know if you have any questions about the recent trades; we’re happy to assist.

– Your Titan Team

Titan Global Capital Management USA LLC ("Titan") is an investment adviser registered with the Securities and Exchange Commission (“SEC”). Titan’s investment advisory services are available only to residents of the United States in jurisdictions where Titan is registered. Please refer to Titan's Program Brochure for important additional information. Titan’s affiliate, Titan Global Technologies LLC (“TGT”), is a registered broker-dealer and member of FINRA/SIPC. Contact Titan at support@titan.com.

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