Menu
Microsoft strongly encourages users to switch to a different browser than Internet Explorer as it no longer meets modern web and security standards. Therefore we cannot guarantee that our site fully works in Internet Explorer. You can use Chrome or Firefox instead.

Block Plunges on a Short-Seller Report: Time to Sell?


The stock market was largely in positive territory on Thursday morning, but fintech innovator Block (NYSE: SQ) was a big exception. As of 10 a.m. ET, Block's shares had lost a staggering 20% of their value, heading sharply in the opposite direction of the overall financial sector.

The reason for the massive plunge in Block is a report by notable short-seller Hindenburg Research announcing its short position in the fintech stock.

In a nutshell, Hindenburg accuses Block of inflating Cash App's user base and having very little in the way of fraud controls. Over a two-year investigation, Hindenburg claims it has taken advantage of the unbanked people it claims to be helping by facilitating illegal activity.

Continue reading


Source Fool.com

Like: 0
SQ
Share

Comments