Block Shares Tumbles as Key Executive Leaves

Block (SQ:US) shares fell 2.5% in early Tuesday trade after the company said that Alyssa Henry, the CEO of its Square business, is leaving the digital payments business.

Henry will depart the company on October 02 after spending over nine years at Square.

She will be replaced by co-founder Jack Dorsey. It is unclear whether Mr. Dorsey plans to remain as the Head of Square.

“While it is unfortunate to see the departure of the long-time leader, we view the decision to place Dorsey at the helm (however temporary/permanent it may be) as an indication of the level of importance placed on the Square business in the context of the broader Block ecosystem,” KeyBanc analysts said in a note.

Investors see this as yet another overhang on Square shares amid wider concerns about revenue growth. 

Block shares were already down 20.7% year-to-date after recently hitting fresh 52-week lows.

Shares were dealt a fresh blow earlier this month when the company said sellers on its Square platform have been unable to access their accounts or process payments due to a systems outage.

Congress members Ro Khanna and Josh Gottheimer were trading Block shares recently. Most recently, Representatives Khanna and Gottheimer were selling shares in the digital payments company.