Key Points
Hindenburg Research on Thursday disclosed short positions in Block Inc and alleged that the Jack Dorsey-led payments firm overstated its user numbers and understated its customer acquisition costs..
2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping, the short seller said in a note published on its website...
The U.S. short-seller, behind a market rout of over $100 billion in Indias Adani Group, said in its report that former Block employees estimated that 40%-75% of accounts they reviewed were fake, involved in fraud, or were additional accounts tied to a single individual..
Hindenburg added that Block obfuscates how many individuals are on the Cash App platform by reporting misleading transacting active metrics filled with fake and duplicate accounts..
The companys ticker was third most trending on retail investor focused forum StockTwits.Last month, Block said it is meaningfully slowing the pace of hiring this year to control costs...
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