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Block serves as a "proxy for the forgotten tech stocks" that have lagged in the Nasdaq rally.
While the NASDAQ has experienced significant growth, Block has shown minimal progress, proving to be quite underwhelming.
This particular stock holds a unique position as a "US recession special."
Should a recession hit the United States, a substantial portion of their customer base, consisting of small businesses reliant on the cash app, is anticipated to face severe financial hardship, potentially leading to bankruptcy and even permanent closure.
Consequently, Block is expected to be significantly impacted.

Analyzing the holdings of US institutional investors just three months ago, it became apparent that only a tiny number possessed Block shares, with a notable amount holding short positions.
However, in the scenario where a recession does not materialize in the US, this stock, which has already incorporated a severe recession into its valuation, is poised for an extraordinary rally.
My conviction in this outcome is unwavering; the only uncertainty lies within the timing. Perhaps the recent rebalancing within the NASDAQ serves as the catalyst?

As the US tech rally expands to include a broader range of companies, many US institutional investors will likely recognize the potential value in Block, perceiving it as a hidden gem within the market.

I firmly believe that a substantial rally, aiming to bridge the gap between Block and its peers, is on the horizon.