Block stock plunged 19% this morning
Good morning.
GM
Hindenburg described Block’s internal systems as a ”‘Wild West’ approach to compliance” and that’s the kind of language I like in reporting.
Short seller Hindenburg Research puts out a short report on Block. It argues that Block developed a “frictionless” and “magical” financial technology and "mislead investors with inflated metrics". The report claims that Block’s Afterpay acquisition is flopping. “In 2022, the year it was acquired, Afterpay lost $357 million, accelerating from $184 million in 2021.” Since publishing the report this morning morning, the #SQ stock has been plunging.
Hindenburg Research@HindenburgRes
NEW FROM US:
Block—How Inflated User Metrics and "Frictionless" Fraud Facilitation Enabled Insiders To Cash Out Over $1 Billion
hindenburgresearch.com/block $SQ
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hindenburgresearch.com
Block: How Inflated User Metrics and “Frictionless” Fraud Facilitation Enabled Insiders To Cash Out Over $1 Billion
12:34 PM · Mar 23, 2023
1.32K Reposts · 3.8K Likes
