Block (SQ) is rocketing higher, as hoped.
On March 28, we noted, “Just days ago, the SQ stock took a $10 header on a Hindenburg short report allegation that Square has ‘systematically taken advantage of the demographics it claims to be helping.’ However, it looks like most of the negativity has been priced into the stock. Plus, analysts are out in defense of the SQ stock.”
At the time, SQ traded at $64.40. Today, it’s up to $69 a share, and could soon refill its bearish gap around $72. Helping, Bernstein analyst Harshita Rawat has an Outperform rating on Block with a $90 price target after analyzing the concerns raised by the Hindenburg short, as noted by TheFly.com. Conversations with former employees suggest the key allegations around illicit activity on Cash App, “Wild West” approach to compliance and “wildly overstated” user account are exaggerated with some anecdotes either taken out of context or are dated.
If you were in this trade, we’d love to hear how you did.