Shares of Block, Inc. (XYZ) ticked up slightly in Friday's premarket session. The reason? The company is throwing a bigger party for the small businesses that use its services, and some very recognizable names just showed up.

On Thursday, Block announced a significant expansion of what it calls its partner ecosystem. The guest list is now nearing 1,000 companies, and the latest RSVP confirmations include some heavy hitters: Amazon.com, Inc. (AMZN), Intuit Inc.'s (INTU) QuickBooks, and Uber Technologies, Inc.'s (UBER) Uber Eats.

Think of it this way: if you're a small business using Block's Square platform to run your shop, this expansion means you can more easily connect your sales data to your Amazon store, sync everything with your QuickBooks accounting, and maybe even manage orders from Uber Eats—all through integrated tools Block provides. The goal is to let sellers run their entire operation more smoothly from one place. It's a logical move to make their core product stickier and more valuable.

The broader tech sector was up 0.56% on Thursday, so Block's modest premarket move of 0.34% to $53.07 just kind of goes with the flow. But if you look under the hood, the stock's own engine has been sputtering for a while.

Technical Reality Check

Let's talk charts. The stock is currently trading 8.3% below its 20-day simple moving average and a more concerning 20.4% below its 100-day average. That's not a great sign for momentum. Over the past 12 months, shares are down 36.31%, hanging out much closer to their 52-week lows than their highs.

The Relative Strength Index (RSI) sits at 38.24, which is in neutral territory—the stock isn't oversold or overbought, it's just... there. Meanwhile, the MACD indicator is negative and below its signal line, which technical traders read as bearish pressure. So you have neutral and bearish signals mixing together, which doesn't give a clear directional cue.

For the traders keeping score at home, key resistance is at $58.50 and key support is down at $46.50.

Lagging Behind The Pack

Here's another angle: Block is currently underperforming its own sector. The Technology sector is ranked #1 out of 11 sectors, but it's been a bit choppy lately—down 2.50% over 30 days and up a scant 0.25% over 90 days. Block's weakness suggests its issues might be more company-specific than a reflection of the whole tech world falling apart. Investors will be watching to see if it can catch up to the sector's pace.

All Eyes On February 26

The next big date on the calendar is February 26, when Block reports earnings. The estimates tell a story of shifting expectations:

• EPS Estimate: 49 cents (down from 71 cents previously)
• Revenue Estimate: $6.32 billion (up from $6.03 billion)
• Valuation: P/E of 10.6x (which some see as a value opportunity)

Analysts, on average, still have a Buy rating on the stock with a price target of $83.50. But if you look at recent moves, it's a story of lowered sights:

• Cantor Fitzgerald: Overweight rating, but lowered target to $70.00 (Feb. 17)
• Macquarie: Neutral rating, lowered target to $65.00 (Feb. 11)
• Citigroup: Buy rating, lowered target to $85.00 (Feb. 5)

The Report Card

One way to size up Block is through a multi-factor scorecard. The signals are mixed:

• Value Rank: 82.68 — This is high, suggesting the stock looks cheap compared to peers.
• Growth Rank: 89.04 — Also strong, pointing to solid growth potential.
• Quality Rank: 19.01 — This is low, hinting at some concerns about the company's financial health or stability.
• Momentum Rank: 6.84 — Very weak, confirming what the price chart shows.

The verdict from this data? There's potential on paper thanks to value and growth scores, but the poor quality and momentum rankings are flashing yellow lights for investors.

So, Block is making smart business moves by expanding its ecosystem—that's the good news for the long-term story. But the stock itself is still wrestling with weak technicals and cautious analyst adjustments. The earnings report next week will be the next test to see if the fundamentals can start to outweigh the sluggish momentum.