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    Should Square’s Expanded Role at Honolulu Cookie Shape Block’s (SQ) Merchant-Services Investment Narrative?

    Simply Wall St·07/19/2026 19:16:44
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    • Honolulu Cookie Company announced that it has expanded its partnership with Square, now running Square’s retail, loyalty, and data tools across 14 locations on Oahu, Maui, Las Vegas, and Guam, and using the platform to support a new flagship store concept opened in July 2026.
    • This deeper deployment highlights how merchants are increasingly relying on Square not just for payments, but as an operations backbone integrating inventory, customer insights, and multi-location expansion.
    • Next, we’ll examine how Square’s role as Honolulu Cookie Company’s operational backbone across multiple locations influences Block’s broader investment narrative.

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    Block Investment Narrative Recap

    To be comfortable owning Block, you need to believe Square can deepen its role as an all‑in‑one operating system for merchants while Cash App and newer products help absorb ongoing competition and regulatory uncertainty. The Honolulu Cookie Company rollout reinforces Square’s multi‑location, higher‑complexity capabilities, but it does not materially change the near term focus on sustaining Cash App engagement or the risk of margin pressure if payments and lending become more commoditized.

    Among recent updates, Block’s launch of Managerbot, an AI assistant embedded in Square Dashboard, is especially relevant. When you place this alongside Honolulu Cookie Company’s use of Square for inventory, loyalty, and multi‑location growth, you see a clearer through line: Block is leaning into software and automation as potential catalysts for deeper merchant stickiness, which may matter more over time than any single new customer win.

    Yet while this merchant success story is encouraging, investors should also recognize that growing competition and potential fee compression in payments could still...

    Read the full narrative on Block (it's free!)

    Block's narrative projects $33.6 billion revenue and $3.3 billion earnings by 2029.

    Uncover how Block's forecasts yield a $90.52 fair value, a 13% upside to its current price.

    Exploring Other Perspectives

    XYZ 1-Year Stock Price Chart
    XYZ 1-Year Stock Price Chart

    Compared with the consensus view, the most bearish analysts paint a tougher picture. They see revenue only reaching about US$31.1 billion and earnings about US$2.9 billion by 2029, and worry that rising cyber and regulatory costs could blunt the benefits of Block’s rapid product integration push you see in the Honolulu Cookie Company news. Their stance reminds you that expectations vary widely and that new information like this could shift either narrative over time.

    Explore 9 other fair value estimates on Block - why the stock might be worth 10% less than the current price!

    Form Your Own Verdict

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.