Why Block Stock Got Rocked Again on Friday
Shares of Block (NYSE: SQ) stumbled to the finish line this week, slipping by nearly 2% on Friday in contrast to the 0.6% gain of the S&P 500 index. Continued fallout from a scathing short-seller's report and general concerns about the health of the finance sector kept investors wary of the stock.
At least Block's Friday was better than its awful Thursday, the day the report was published; that morning, the fintech's share price took a massive 20% blow before recovering somewhat.
Short-seller reports are, by their nature, highly critical, but this one really put the screws to Block's business. Much of Hindenburg Research's allegations had to do with the company's highly popular Cash App, which Hindenburg claims is a conduit for illegal activity -- implying that Block is either negligent or outright abetting fraud.
Source Fool.com
