Block’s Short-Seller Response Gets Approval. Wall Street Still Likes the Stock.

Block

response to allegations from a short-seller betting against its stock is getting cautious nods from Wall Street, with analysts still upbeat on the payments company.

Block (ticker: SQ) stock tumbled 15% last Thursday after Hindenburg Research disclosed a short position and released a critical report alleging that Block had inflated user metrics and didn’t rein in illicit activity by users on its Cash App platform. A short position is a trade in which an investor borrows shares in a company and then sells them, wagering on repurchasing the stock later at a lower price—effectively betting against the stock.