Blockage As investors digested a cruel quarterly report and a wave of analyst downgrades with one problem: Cash App downgrades, the stock was climbing more than 20% the day after its second day of poor day.

The first quarter revenue Miss shaking Wall Street prompted several companies, including Wells Fargo, Seaport, BMO and Benchmark, to downgrade their stocks overnight. Many have raised new concerns about stagnant cash application user growth, consumer demand, and a soft macro environment that could impact monetization.

"The stagnation of the number of active users of the app is even more concerning," Benchmark wrote in its comments.

The financial services company missed out on a comprehensive basis in revenue, gross profit and payment volumes and cut full-year guidance, citing macro uncertainty, weaker consumer spending and lower-than-expected inflows during the usual strong tax refund season.

"I just think we don't have enough focus and enough focus on network and network density, and that's what we are based on," CEO Jack Dorsey said on the revenue call. "Of course, we want to deepen our engagement with our customers through banking services and lending, and I have no doubt...but at the same time, we need to make sure we keep growing the network, which starts with peers and get along at the same time."

The cash app generated $1.38 billion in gross profit in the first quarter, up 10% from the same period last year, but well below the $1.42 billion StreetAccount consensus. The monthly active people remained at 57 million, and inflows grew by just 8% despite paid payments on cash cards and broader efforts to position the cash app as a comprehensive banking alternative.

Wells Fargo calls for “numerous cash applications monetization red flags”, while Seaport points to GPV growth for several consecutive quarters. Even Morgan Stanley reiterated its overweight rating, also called Cash App Miss “surprising”, although it highlights the momentum of Square’s seller business, especially in international markets.

BMO downgraded stocks to market. Wells Fargo Say it is unwilling to "the arrangement for the second half of hail Mary" and the weight is the same. The Harbour was relegated to neutral, writing: “Will the real Jack Dorsey stand up?”

Still, some people remain optimistic Bank of America Reiterate its buy rating, saying the stock is undervalued, and Morgan Stanley Say it's an attractive near-term entry point.

Block's turnover plan depends on the loan. The company said cash application lending (now FDIC approved to initiate loans through its banking subsidiaries) would double the number of qualified users and increase profit margins through internal delivery of services.

As Block hopes to re-raise growth in the second half of the year, marketing spending will also grow by 50% in the second quarter.

"We don't have enough confidence in the possibility of this rebound and recommend buying stocks at a weakness," Benchmark wrote.

Meanwhile, rival Venmo shows signs of motivation.

parent company PayPal The app reportedly saw revenue increase by 20% in the first quarter, due to the increase in adoption of the number of growth in Venmo debit cards, instant transfers and checkout. While PayPal did not disclose Venmo's exact revenue figures, it said monetization for each user is improving, as a result of explicit efforts to embed Venmo's deeper e-commerce process into the e-commerce stream.

Two very different strategies are now unfolding: Cash apps are leaning more deeply towards lending and banking, while Venmo pursues spending at checkout. However, the goal is the same: own the consumer's wallet.

Currently, Venmo seems to be gradually growing as the cash app is being reorganized.