5 ms·

I didn't know Square had changed their name to Block. Looks like it happened in December 2021: https://investors.block.xyz/news/news-details/2021/Square-Inc.-Ch

I didn't know Square had changed their name to Block. Looks like it happened in December 2021: https://investors.block.xyz/news/news-details/2021/Square-Inc.-Changes-Name-to-Block/default.aspx https://investors.block.xyz/news/news-details/2021/Square-In... That said this really seems overblown. The report seems to mostly just talk about Cash App. Square Payments, Weebly and TIDAL are not even mentioned. Afterpay is mentioned but that was a 2022 acquisition so the problems likely predate Block's involvement. It feels weird that they're using Cash App to indict the company as a whole. A single product in their portfolio doesn't justify calling the whole company a fraud.

jevgeni 4y ago
> Cash App, which analysts have said is the most important driver of the stock, has demonstrated signs of stagnation with slowing inflows and account growth.
chii 4y ago
> It feels weird that they're using Cash App to indict the company as a whole. they profit off shorting. So it makes sense to target them if the company has _some_ issues with fraud, even if it's a small part of their business, as it hasn't been priced in yet before this news breaks and people are positive about the company. They aren't doing a public service or anything. It's a reason why companies like credit suisse don't get targeted by hindenburg, because the market has almost priced in all of the fraud, and the shorting opportunities arent really there.
- likecarter 4y ago
  It just ruins their reputation as a reliable short-seller. It's short-sighted. They had good reports until now.
  - johngladtj 4y ago
    How does it ruin their reputation as short sellers?
    - hef19898 4y ago
      By targeting a SV darling like Dorsey?
    - likecarter 4y ago
      Putting out a low-quality report?
      - johngladtj 4y ago
        How is it low quality?
      - JumpCrisscross 4y ago
        > a low-quality report Block’s main product not only overstating its numbers but also wilfully facilitating money laundering and fraud could be a company-ending problem.
- hef19898 4y ago
  Credit Suisse was massively shorted, no idea if Hindenburg did as well.
- deleted 4y ago
  [deleted]
boh 4y ago
If the app is the primary business driving profitability growth you can use it to indict the company. The stock price isn't based on non-performing parts of the business.
melling 4y ago
What feels weird that the top comment is by someone who didn’t even know the company changed its name 2 years ago. Can we do better? HN could be so much better.
- overthrow 4y ago
  HN ranks newer comments near the top for a few minutes so everyone gets a chance at visibility. So don't worry, in a few minutes I'm sure my amateur take will sink down to its rightful place.
- some1else 4y ago
  Make clear suggestions, or just do better yourself.
trimbo 4y ago
> It feels weird that they're using Cash App to indict the company as a whole. Cash App is 60% of their revenue.
- reducesuffering 4y ago
  Their "revenue" is also trading bitcoins, where people buy/sell bitcoins on their platform and is booked as $28k revenue (current price) where they only ever stand to profit like $10 off that.
mst 4y ago
The vast share price growth since the rebrand and Cash App launch seems like a legitimate target if the app is in fact bullshit. They're not saying the company is worthless, they're saying it's overvalued currently because most of its current share price is a result specifically of Cash App. Their proposed actual valuation is quite a long way from zero and entirely consistent with them thinking the other products are at least somewhat solid. (the title on here could probably do with editing, but that's a separate matter)
- stouset 4y ago
  > The vast share price growth since the rebrand Uh, the price at rebrand was 194.50. The price at close yesterday was 77.46. That's a 60% loss, not "vast share price growth".
yieldcrv 4y ago
Some parts are overblown, financial blacklisting sex workers is a waste of everyone’s time and resources. Conflating all sex work with sex trafficking is … consistent, but useless and inaccurate. Flouting FinCEN and other US agency regulations would be a valuable problem Many of FinCEN’s regulations are stupid and investors bidding up shares on user metrics is also dumb, but if any investor purchased based on poor metrics then that will be an expensive problem the regulatory slaps will be expensive either way The interchange issue is hard to tell about its value, but looking at Paypal’s issue with the SEC can provide clues Is Hindenburg double dipping on whistleblower reports to the SEC?
_blz2 4y ago
How are you confident in your opinion without even knowing the name had changed a couple of years ago?

jevgeni 4y ago

> Cash App, which analysts have said is the most important driver of the stock, has demonstrated signs of stagnation with slowing inflows and account growth.

chii 4y ago

> It feels weird that they're using Cash App to indict the company as a whole. they profit off shorting. So it makes sense to target them if the company has _some_ issues with fraud, even if it's a small part of their business, as it hasn't been priced in yet before this news breaks and people are positive about the company. They aren't doing a public service or anything. It's a reason why companies like credit suisse don't get targeted by hindenburg, because the market has almost priced in all of the fraud, and the shorting opportunities arent really there.

likecarter 4y ago
It just ruins their reputation as a reliable short-seller. It's short-sighted. They had good reports until now.
- johngladtj 4y ago
  How does it ruin their reputation as short sellers?
  - hef19898 4y ago
    By targeting a SV darling like Dorsey?
  - likecarter 4y ago
    Putting out a low-quality report?
    - johngladtj 4y ago
      How is it low quality?
    - JumpCrisscross 4y ago
      > a low-quality report Block’s main product not only overstating its numbers but also wilfully facilitating money laundering and fraud could be a company-ending problem.
hef19898 4y ago
Credit Suisse was massively shorted, no idea if Hindenburg did as well.
deleted 4y ago
[deleted]

boh 4y ago

If the app is the primary business driving profitability growth you can use it to indict the company. The stock price isn't based on non-performing parts of the business.

melling 4y ago

What feels weird that the top comment is by someone who didn’t even know the company changed its name 2 years ago. Can we do better? HN could be so much better.

overthrow 4y ago
HN ranks newer comments near the top for a few minutes so everyone gets a chance at visibility. So don't worry, in a few minutes I'm sure my amateur take will sink down to its rightful place.
some1else 4y ago
Make clear suggestions, or just do better yourself.

trimbo 4y ago

> It feels weird that they're using Cash App to indict the company as a whole. Cash App is 60% of their revenue.

reducesuffering 4y ago
Their "revenue" is also trading bitcoins, where people buy/sell bitcoins on their platform and is booked as $28k revenue (current price) where they only ever stand to profit like $10 off that.

mst 4y ago

The vast share price growth since the rebrand and Cash App launch seems like a legitimate target if the app is in fact bullshit. They're not saying the company is worthless, they're saying it's overvalued currently because most of its current share price is a result specifically of Cash App. Their proposed actual valuation is quite a long way from zero and entirely consistent with them thinking the other products are at least somewhat solid. (the title on here could probably do with editing, but that's a separate matter)

stouset 4y ago
> The vast share price growth since the rebrand Uh, the price at rebrand was 194.50. The price at close yesterday was 77.46. That's a 60% loss, not "vast share price growth".

yieldcrv 4y ago

Some parts are overblown, financial blacklisting sex workers is a waste of everyone’s time and resources. Conflating all sex work with sex trafficking is … consistent, but useless and inaccurate. Flouting FinCEN and other US agency regulations would be a valuable problem Many of FinCEN’s regulations are stupid and investors bidding up shares on user metrics is also dumb, but if any investor purchased based on poor metrics then that will be an expensive problem the regulatory slaps will be expensive either way The interchange issue is hard to tell about its value, but looking at Paypal’s issue with the SEC can provide clues Is Hindenburg double dipping on whistleblower reports to the SEC?

_blz2 4y ago

How are you confident in your opinion without even knowing the name had changed a couple of years ago?