June 24, 2024
Block’s stock tumbles after short seller issues report

Block’s stock tumbles after short seller issues report

U.S. short seller Hindenburg Research touted Block Inc. as its latest bearish target Thursday.

Shares of the company, which is the parent of Square and the Cash App, were down about 17% shortly after Thursday’s open. Block’s stock SQ, -15.24% was on track for its largest single-day percentage decline since March 16, 2020, when it fell 28.6%, according to Dow Jones Market Data.

Block wasn’t immediately available to comment on the contents of the Hindenburg report.

Hindenburg teased late Wednesday that it was preparing to launch a new report.

The activist short seller, founded by Nathan Anderson, is known for most recently shorting Indian conglomerate Adani Group. The January report sent all Adani-linked companies’ shares to slump and Adani’s net worth to spiral. Adani strongly denied the allegations.

Adani executives went on a charm-offensive roadshow to win back investor trust in late February. An Indian Supreme Court independent panel was opened earlier this month to look into Hindenburg’s allegations.

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