Baron Funds, an investment management company, released an investor letter to its "fintech Baron Fund" in the first quarter of 2025. A copy of the letter can be downloaded here. It fell sharply in March, with U.S. stocks down 5% in the first quarter. When the market started, the S&P 500, the most developed market, reached a new high. But concerns about tariffs, inflation and gentle economic growth, as well as concerns about secular growth in AI have led to risk conditions. In the first quarter, the fund fell 1.31% (institutional stocks), while the Factset Global Fintech index (benchmark) had a return of -7.52%, and the S&P 500 fell -4.27%. Since its inception, the fund has appreciated annually at 11.27% annually, while the benchmark earnings are 2.22%. Also, check the fund’s top five holdings to see its best options for 2025.

The Baron Fintech Fund highlighted Block, Inc in its first-quarter 2025 investor letter. (NYSE:XYZ) and other stocks. Block, Inc. (NYSE:XYZ) is a technology company focusing on business and financial products and services. Block, Inc. (NYSE:XYZ) has a one-month return of 1.12%, and its stock has lost 11.46% of its value in the past 52 weeks. May 23, 2025, Block, Inc. (NYSE:XYZ) shares closed at $58.74 per share, with a market value of $36.126 billion.

The FinTech Foundation pointed out in its Q1 2025 investor letter about Block, Inc. (NYSE:XYZ) The following content:

“Block, Inc. (NYSE:XYZ) provides point-of-sale technology for small businesses and serves cash application ecosystems for individuals. The company reported quarterly results and recent guidance, the stock fell. In the fourth quarter, total profits rose 14% and earnings per share rose 51%, which was strong overall, but street expectations were missed. Additionally, investors expressed doubts about the 15% gross profit growth guidance for 2025, as it means accelerating throughout the year in an uncertain macroeconomic environment. Nevertheless, management reiterated their expectations for a “40 Rules” investment framework in 2026, with mid-grade profit growth and 20% operating margin. We will continue to own the stock due to Block's long-term runway growth, sustainable competitive advantage and innovative product offerings. ”

Business man using mobile point sales equipment outside retail store.

Block, Inc. (NYSE:XYZ) Not among the 30 most popular stocks in hedge funds. According to our database, at the end of the first quarter, 76 hedge fund portfolios held Block, Inc. (NYSE:XYZ), last quarter was 81. Although we acknowledge Block, Inc. (NYSE:XYZ) The potential is an investment, but our belief is that AI stocks have greater hope to offer higher returns and do so in a shorter time frame. If you are looking for AI stocks that are as promising as NVIDIA, but whose earnings are trading at less than 5 times the price, check out our report on undervalued AI stocks.