Block Shares Surge on Square-Google Ask Maps Partnership

Block's shares have increased by 5.2% after a new integration was announced between Square and Google's Ask Maps platform. The partnership will bring U.S. food and beverage sellers into Ask Maps, making it easier for users to discover and transact with them.

This expanded collaboration is part of Block's two-sided ecosystem thesis, which sees Square as the operating system for merchants and Cash App as a consumer financial hub. The integration of AI-powered restaurant discovery and ordering with Square's ecosystem and Order by Cash App will likely support higher engagement and throughput across both platforms at relatively low incremental cost for sellers.

However, investors should also consider the risks associated with this partnership, including recent earnings volatility, rich earnings multiples, and heavy reliance on external partners like Google. The company's shares have been on the rise but are still potentially undervalued by 19%.