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Comment by overthrow | Hacker News Reader

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-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.

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> 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.

It just ruins their reputation as a reliable short-seller. It's short-sighted. They had good reports until now.

How does it ruin their reputation as short sellers?

By targeting a SV darling like Dorsey?

Putting out a low-quality report?

How is it low quality?

> 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.

Credit Suisse was massively shorted, no idea if Hindenburg did as well.

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)

> 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".

> It feels weird that they're using Cash App to indict the company as a whole.

Cash App is 60% of their revenue.

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.

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.

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.

Make clear suggestions, or just do better yourself.

> 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.

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.

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

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