- Block, Inc’s (NYSE:SQ) shares are trading higher today as it prepares to report results on Thursday after markets close.
- Block’s first-quarter results could see investors skyrocket in on the payments firm’s Cash App business following U.S. short-seller Hindenburg Research’s allegations, including inflated user count.
- Morgan Stanley analysts in April said that some bearish investors remain uncertain about the amount of gross profit from “potential illicit activity” on the Cash App platform.
- Eventually, bears suspect a meaningful amount of gross profit might come under pressure if regulators crack down on Cash App, making it challenging to accept Cash App as a legitimate, trusted bank in the long term, Reuters cites Morgan Stanley analysts.
- Block’s revenue growth took a hit over the past few quarters as inflationary pressures forced consumers to defer big-ticket purchases.
- Hindenburg had accused Block of overstating its user numbers by allowing fake or duplicate accounts on its Cash App platform.
- Cash App reported 51 million monthly active customers as of December 31, including 44 million verified customers.
- Wall Street analysts expect more transparency from Block over how it reports user count on Cash App and address concerns flagged by the report, including its weak know-your-customer (KYC) compliance.
- Price Action: SQ shares traded higher by 3.00% at $59.50 on the last check Wednesday.
Here’s Why Lordstown Motors Stock Is Moving
Lordstown Motors Corp (NASDAQ: RIDE) shares are trading higher by 7.05% to $1.54 Friday afternoon amid strength in EV stocks after the Treasury Department announced it is raising the price cap for EV tax credits to $80,000.
