Despite Opposition From Short-Sellers, Block Just Reported a Huge Improvement to the Business
Shares of fintech company Block (NYSE: SQ) are down nearly 80% from their all-time highs, and they're down roughly 1% year to date as well. Some of the stock's more recent troubles can be attributed, in part, to a short report from Hindenburg Research in March. The report outlined a long list of potential reasons for a 75% downside in Block stock, spooking investors.
Of course, Block's management promptly rebutted some of Hindenburg's claims. And several weeks later, the company reported financial results, showing promising progress with the business. Has fear from the short report created a buying opportunity for long-term investors?
To be fair, even as a Block shareholder, I share some of Hindenburg's concerns. I wouldn't argue against the short research firm's critiques of Block's acquisition of Afterpay, the high valuation of the stock, and the seemingly hyperbolic explanations of fairly common fintech capabilities from management.
Source Fool.com
