Block unveils ‘tap to pay’ partnership with Apple

Block (NYSE: SQ) shares rose over 6%, on Thursday, June 2, after revealing that it’s working with Apple (NASDAQ: AAPL). This cooperation will revolve around bringing ‘Tap to pay’ on iPhone to Square sellers later this year. 

Meanwhile, this new technology will be tested with select sellers through an early access program. In essence, this announcement means that SQ will become a partner rather than a competitor to AAPL.

Furthermore, tap to pay will allow merchants using Square’s POS system to accept contactless payment through the integration with the company’s broader ecosystem, allegedly without the need for additional hardware. 

SQ and AAPL Chart and analysis 

As noted, shares of SQ gained over 6%, in yesterday’s trading sessions, with total gains of over 15%, in the last five days. 

However, year-to-date (YTD) shares are down over 46%, but with the recent jump, they are now trading above the 20-day Simple Moving Average on steady volume. If shares break the $91 barrier, perhaps more upside could be had.  

On the other hand, analysts on Wall Street agree that the shares are a strong buy. The average price prediction for the next 12 months is at $144.48, which represents a potential increase of 65.23%, from where the shares are now trading at $87.44. 

Similarly, APPL shares finished the last trading session up 1.63%; however, the shares are down over 16% YTD.

In short, the shares rejected the support line above $132 in the second part of May and surged back up to trade above the 20-day SMA. Trading volumes are steady, but 2022 has seen choppy trading for the stock, so more volatility could be expected. 

Again, analysts agree the shares are a strong buy, placing the average price for the next 12 months at $186.45, representing a potential surge of 23.31% from the current trading price of $151.21. 

Bottom line 

On the whole, it seems as if Apple is going from strength to strength in 2022, despite the choppy trading we have seen for the year. 

There seem to be a lot of worries in the markets, and tech companies have been out of favor lately; yet, new partnerships and technologies should make high-quality tech stock winners regardless of the market environment.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.