Why did Block stock jump over 20% today?

Shares jumped after Jack Dorsey outlined deep headcount cuts from about 10,000 to under 6,000 and highlighted AI cost cutting alongside strong year-end demand. Investors expect a leaner cost base to lift operating margins across Square and Cash App if service quality holds and fraud losses stay contained.

How do Jack Dorsey layoffs tie into AI cost cutting?

Management plans to automate support, risk checks, and other back-office workflows with AI. The layoffs reduce layers and concentrate spend on high-impact areas. If automation maintains uptime and customer satisfaction, operating expenses as a share of gross profit should fall, supporting margin expansion into 2026.

What should Singapore investors watch beyond the SQ stock price?

Look at operating expense trends, gross profit per active user, Cash App loss rates, and progress toward a workforce below 6,000. Also track service response times and dispute metrics. These indicators show whether AI savings are real without hurting growth or customer experience.

Is SQ expensive after the spike?

On recent TTM data, price-to-sales near 2.16 and EV/sales around 1.88 are not stretched if margins improve. The upside case needs disciplined opex and steady gross profit growth. Consider dollar-cost averaging rather than chasing a single print after a 20% move.

What are the main risks to the AI cost cutting plan?

Execution risk is highest. Model errors can raise fraud losses or hurt customer support, forcing higher costs again. Regulatory oversight of payments and financial services can tighten. Competitive pressure and USD/SGD swings also matter for Singapore investors allocating capital in USD.

Global Market Insights

SQ Stock Today: February 27 – Jumps Over 20% on AI-Driven Cuts

ByHuzaifa Zahoor February 27, 2026February 27, 2026

Block stock rallied more than 20% today after Jack Dorsey said the company will reduce headcount from about 10,000 to below 6,000 and lean on AI to streamline operations. Block (SQ) also cited strong year-end demand across Square and Cash App. Investors in Singapore are weighing a leaner cost base, potential margin gains, and execution risks into 2026. Below, we break down what changed, where savings could show up, and how to position around this move.