Now Hindenburg shorted shares of Jack Dorsey-led company Block, stock fell 18%

Hindenburg Research Report: After Adani Group, short seller Hindenburg Research said on Thursday that it has shorted Block Inc shares. The research firm has said that it has shorted shares of the payment company led by Jack Dorsey. Hindenburg Research said in its report that while the company has increased the user count, it has reduced the expenditure incurred on making customers. After the Hindenburg report came to the fore, Block’s share is seen falling by 18 per cent in the premarket trade.

Hindenburg Research said in its report that in the last two years of investigation, it found that Block has systematically taken advantage of the demographics it claims to help. The report states that the magic behind Block’s business is not predatory innovation, but its intent to defraud consumers and the government. Also, to avoid regulation, dress up predatory loans, revolutionary technology, confuse investors and inflate metrics.

NEW FROM US:

Block—How Inflated User Metrics and “Frictionless” Fraud Facilitation Enabled Insiders To Cash Out Over $1 Billionhttps://t.co/pScGE5QMnX $SQ

(1/n)

— Hindenburg Research (@HindenburgRes) March 23, 2023

According to Hindenburg, it spoke with former employees, partners and industry experts who were involved. It also reviewed regulatory and litigation records as well as public records containing FOIA and requests.

Hindenburg said in his report that Jack Dorsey has built an empire of 5 billion dollars. Also, the company alleged that Dorsey and the company’s top executive have sold shares worth one billion dollars. Let us tell you that Jack Dorsey has been the co-founder and CEO of Twitter.

Earlier on January 24, 2023, Hindenburg Research had shorted the shares of Adani Group. In the research report, a report was issued accusing the Adani group of stock manipulation and accounting fraud. In the research report, the issue of huge outstanding debt on the group was also raised, after which there was a huge decline in the listed stocks of Adani Group in the stock market. After the release of the Hindenburg Research report, the market capitalization of all the 10 stocks of Adani Group listed on the stock exchange came down from Rs 19 lakh crore to Rs 7.11 lakh crore.

read this also

Climate Change Impact: India’s food security threatened by the impact of climate change! Wheat-rice production may decrease