Hindenburg Report Stops Share Down
  • Hindenburg Research has revealed a short position in Block Inc.
  • Block said it is considering legal action against the short sellers.
  • Wall Street has a consensus overweight rating for block stocks.

Block Inc shares are trading down 15% on Thursday after Hindenburg Research revealed it had taken a short position in the financial technology company.

Why Hindenburg Is Selling Blocks Short

According to Hindenburg, the multinational conglomerate has a huge number of fake or duplicate accounts on the popular Cash App platform.

Even more alarming, over two years of research by the company claims many of these accounts are involved in criminal activity, including sex trafficking.of report read:

Block has misled investors on key metrics, employed predatory products and compliance worst practices to drive growth and profit from promoting fraud against consumers and governments.

In February, Bullock said: monthly active users In December, it was 51 million, up 16% year-on-year. The company’s stock is slightly in the red in his one-year period following today’s price action.

Block legal action against Hindenburg

Hindenberg also accepted and disputed the fact that management, including CEO Jack Dorsey, sold more than $1 billion worth of the company’s shares to benefit from the stock price surge caused by the pandemic.

of responseBlock Inc said Thursday it plans to take legal action against short sellers, reiterating that it is a highly regulated public company.

We plan to work with the SEC to consider legal action against Hindenburg.

Wall Street also appears to oppose Hindenburg. The consensus overweight rating for ‘SQ’ is combined with an average price target of $98, up 60% from here.

By Jules

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