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 (1/n)

hindenburgresearch.comBlock: How Inflated User Metrics and “Frictionless” Fraud Facilitation Enabled Insiders To Cash Out Over $1 BillionBlock Inc., formerly known as Square Inc., is a $44 billion market cap company that claims to have developed a “frictionless” and “magical” financial technology with a mission to empower the “unban…