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Block responds to investor questions stemming from Hindenburg Research allegations

Yahoo Finance Live anchors Julie Hyman and Brad Smith discuss the rise in stock for Block.

Video transcript

JULIE HYMAN: Well, we're watching a trending ticker right now. That is Block. It's responding to investor questions stemming from the allegations in Hindenburg-- the short sellers scathing report. Jack Dorsey's company, the company he runs, addresses the most frequently asked investor questions, most of which relate to how Block measures cash app transacting, active users, and the company's compliance program.

This comes after Block fired back on the Hindenburg report, calling it quote, "inaccurate and misleading," while also looking to explore legal action against the short seller. So that was sort of phase one. This FAQ is sort of phase two. And, Brad, those shares are trading up by about 4% here today.

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BRAD SMITH: Yeah. I was reading through this a little bit before the show-- just about three pages of those FAQs. And ultimately, many of them addressing what the allegations were from Hindenburg Research.

And particularly one that I did zero in on was the 51 million monthly transacting users that they spoke about and saying that of these, approximately 44 million were connected to an identity-verified program that they go through. And so ultimately, approximately 13% of the unverified accounts as of December 2022-- they've completed that identity-verification program so far in 2023 as the date of this release as well here.

JULIE HYMAN: Yeah, interesting stuff. We'll continue to track it and see what the back and forth looks like.