Block (SQ) is on the run, as hoped.
As we noted on March 27: 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. From a current price of $64.12, we’d like to see SQ refill its bearish gap of around $72.50.
Today, Block is up to $69.45 and still running with more Street support.
This time, Truist Securities says, “We are increasingly convinced detractors have a hollow argument following another week of back-and-forth between bears accusing Block of systemic fraud and the company disclosing more info about Cash App accounts and monetization.” Better, the firm has a buy rating with a $105 price target.
By this point, anyone that shorted SQ is taking quite a hit.
Bad move if you followed the Hindenburg bears.