Monday, May 20, 2024

Hindenburg’s effect! Block’s stock free falls by 22%. US short seller expects up to 72% drop in Jack Dorsey’s firm

US short seller Hindenburg’s next target is Jack Dorsey’s payment company Block Inc. The Nathan Anderson-backed research firm whose mind-blogging report on Adani Group led to billions of dollars rout in market, has started to show its effect on Block as well. Right after the report, Block’s share price entered into a free fall to the point it nosedived over 22% in New York.

At the time of writing, Block’s stock was traded at $62.27 down by 14.29%. The stock has hit the day’s low of $56.50 — resulting in an overall nosedive of 22.22% on the exchange.

On the previous day, Block stock stood at $72.65.

The American company which offers payment and mobile banking services for merchants and consumers — is listed on New York Stock Exchange.

Hindenburg’s report claimed that Block has allowed fraudulent accounts to proliferate on cash applications, generating illegitimate revenue and exaggerating user metrics.

The short seller’s report said, “the “magic” behind Block’s business has not been disruptive innovation, but rather the company’s willingness to facilitate fraud against consumers and the government, avoid regulation, dress up predatory loans and fees as revolutionary technology, and mislead investors with inflated metrics.”

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