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☆ Teen consumers are setting new trends — and spending more. A raft of Club names stand to gain
▼ + stars: | 2023-04-04 | by ( Zev Fima | ) www.cnbc.com time to read: +5 min

Piper Sandler on Tuesday released the results of its semi-annual survey on Gen-Z teenagers, with bullish implications for a slate of Club holdings. For its latest report, Piper Sandler surveyed 5,690 U.S. teens between Feb. 13 and March 21, with an average age of 16.2 years across 47 states. Haircare saw a marginal 1% year-over-year gain, but that's of little concern to us given Estee Lauder's minimal exposure to the haircare market, a dynamic highlighted by Piper Sandler. Internet On the ecommerce front, 57% of survey respondents cited Club name Amazon (AMZ) as their favorite online retailer. As Piper Sandler noted, these are encouraging results that highlight Meta's ongoing product-improvement initiatives.

☆ Hindenburg says Block response confirms it inflated Cash App user counts
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +1 min

March 31 (Reuters) - U.S. short seller Hindenburg Research said on Friday Block Inc's (SQ.N) response to its allegations confirmed it had reported inflated user counts on its Cash App to investors for years. The payments firm led by Twitter co-founder Jack Dorsey said on Thursday that 44 million of its more than 51 million monthly active customers on Cash App were verified through its identity program as of Dec. 31. "Block's newly reported internal estimates also show that its previously reported 51 million monthly transacting actives as of December 2022 represented a 16%-31% inflation of its actual estimated internal user counts," Hindenburg said in a note published on its website. After taking a short position in Block, Hindenburg alleged in the report that the payments firm overstated its Cash App user numbers and understated its customer acquisition costs. Short sellers typically sell borrowed securities and aim to buy these back at a lower price.

☆ Block gave a 'robust' response to brutal short-seller report, and shares of the Cash App parent are looking at 40% upside, Bank of America says
▼ + stars: | 2023-03-31 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Block gave a "robust" response to Hindenburg Research's report raising fraud concerns at the Cash App parent. The short-seller said its two-year investigation raised concerns about Block's reporting on monthly active accounts on Cash App and related compliance processes. "These metrics suggest that the short report's allegation that 40-75% of Cash App accounts are fake/fraudulent/duplicative is not credible." Hindenburg said Friday that Block's response "confirmed it has reported inflated user counts to investors for years." Downside risks to BofA's price objective include intensifying competition, macro conditions for small and medium-sized businesses, and a lack of diversification for Cash App revenue and gross profit streams.

☆ Block says Cash App has 44 mln verified monthly users after Hindenburg report
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +2 min

March 30 (Reuters) - Block Inc (SQ.N) said on Thursday 44 million of its more 51 million monthly active customers on Cash App were verified through its identity program as of Dec. 31. The payments firm also estimated that the verified accounts constituted roughly 97% of Cash App inflows. After taking a short position in Block, the report alleged that the payments firm led by Twitter co-founder Jack Dorsey overstated its Cash App user numbers and understated its customer acquisition costs. Block has denied the allegations, saying it would explore legal action against the short seller for its "factually inaccurate and misleading report" that was "designed to deceive and confuse investors". Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai and Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ Tech leaders are urging caution on AI
▼ + stars: | 2023-03-30 | by ( Paayal Zaveri | ) www.businessinsider.com time to read: +4 min

Insider asked ChatGPT, the viral AI chatbot sweeping the internet, to whip up a layoff memo for a pretend tech company, Gomezon. Elon Musk, Steve Wozniak, researchers at Alphabet's DeepMind, and other AI leaders are calling for a pause on training AI models more powerful than OpenAI's GPT-4. My colleague Emilia David looked at why Elon Musk and other tech leaders are right: AI needs to slow down. An Apple Watch is an essential for many of us these days, but the right band can make all the difference. Check out Insider's review of the 18 best Apple Watch bands in 2023.

☆ Don’t Forget to Block Your Ex on Your Payment Apps
▼ + stars: | 2023-03-29 | by ( Dalvin Brown | ) www.wsj.com time to read: 1 min

When a payment app goes ding, we expect it’s somebody giving us money—or wanting money from us. It also could be someone we don’t want to hear from. Alexuis Baremore was asleep in her High Point, N.C., apartment early on Jan. 27 when Cash App’s coin-dropping alert woke her up. The 28-year-old slid her arm under her pillows to feel around for her phone, held it to her face…and then rolled her eyes.

☆ It's becoming increasingly clear that fintech has a fraud problem
▼ + stars: | 2023-03-29 | by ( Bianca Chan | Paige Hagy | ) www.businessinsider.com time to read: +8 min

"With fast growth comes fast fraud," Frank McKenna, a longtime fraud expert who works with banks, lenders, and fintechs, told Insider. Cash App only requires a zip code, debit-card number, and either an email or phone number to create an account. Cash App's alleged fraud problem could also be the result of its large, active customer base, which numbers some 44 million, according to the company's 2022 annual report. The fact that Cash App offers peer-to-peer payments exacerbates the fraud issue, according to McKenna, the chief fraud strategist at Point Predictive, an anti-fraud software company. Digital-only bank Chime has had its own issues with fraud, Jason Mikula, a fintech analyst and consultant, told Insider.

☆ Fintech has a fraud problem, and the onus is on you to figure it out
▼ + stars: | 2023-03-29 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Fintech's fraud misfortune. Which brings us to a story by Insider's Bianca Chan and Paige Hagy about concerns over the prevalence of fraud within consumer-facing fintechs in recent years. Click here to read more about fintech's fraud problem. We've also got the deck StellarFi, a fintech that helps users improve their credit score, used to raise $15 million. For more than 50 different decks used by fintechs to raise fresh funds, check out our library.

☆ Bitcoin is poised to blow up Africa's $86 billion banking system
▼ + stars: | 2023-03-26 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +16 min

Then there's mobile money, which has been around since the early 2000s. Africa's mobile money transactions rose 39% to more than $700 billion in 2021, according to data from the GSM Association, a non-profit representing mobile network operators worldwide. That cash network was extraordinarily difficult and expensive to build, which is why there aren't a lot of direct competitors. Bitnob is SMS-based and piggybacks on the mobile money system, making it easier for people to send money directly into bank accounts and mobile money wallets in African countries. "We're able to settle into bank accounts or mobile money accounts, without the recipients having to interact with bitcoin themselves," Parah tells CNBC.

☆ How this 26-year-old went from running bitcoin trading desks in Taco Bells to creating the largest crypto exchange in Africa
▼ + stars: | 2023-03-25 | by ( Mackenzie Sigalos | ) www.cnbc.com time to read: +28 min

Yellow Card CEO Chris Maurice just before meeting with the Securities and Exchange Commission in Accra, Ghana. Chris MauriceFrom there, Yellow Card users can send or receive digital cash in eligible markets. Zoom In Icon Arrows pointing outwards Yellow Card CEO Chris Maurice in Accra, Ghana loading cash onto his Mobile Money account, MoMo. Yellow Card has facilitated $1.75 billion in transactions since launching in 2019 and has about 220 employees – mostly in Africa. A resident checks his phone outside a mobile money kiosk in the Kibera district of Nairobi, Kenya, on Monday, Aug. 1, 2022.

☆ Report claims 'criminal activity and fraud run rampant' on Cash App—what users need to know
▼ + stars: | 2023-03-24 | by ( Kamaron Mcnair | ) www.cnbc.com time to read: +1 min

A new report from Hindenburg Research, a short seller investment firm, released Thursday has accused Block — the company formerly known as Square, founded by Jack Dorsey — of allowing crime and fraud to "run rampant" on its peer-to-peer payment app, Cash App. The report alleged that Block inflated its customer growth, allowed fake accounts to thrive and dodged revenue regulations — an accusation that triggered a Securities Exchange Commission (SEC) investigation. Hindenburg claims it was able to open fake accounts on Cash App under names Donald Trump and Elon Musk. Block called the report "factually inaccurate" in a statement, and says it is complying with the SEC and exploring legal action against Hindenburg. It's worth noting last March, Block revealed it was the subject of a Consumer Financial Protection Bureau (CFPB) investigation over the way Cash App handles user complaints.

☆ Twitter founder Jack Dorsey's net worth dropped by more than $500 million after US short seller Hindenburg targeted his payments company Block
▼ + stars: | 2023-03-24 | by ( Huileng Tan | ) www.businessinsider.com time to read: +4 min

Jack Dorsey's wealth tumbled after Hindenburg Research targeted his payments company Block, per Bloomberg. The short seller alleged Block misled investors "with inflated metrics"Block's share price tumbled as much as 22% on Thursday on Hindenburg's report. Block's share price tumbled as much as 22% on Hindenburg's report before closing 15% lower at $61.88 apiece on Thursday. It said Hindenburg's attacks are designed "solely to allow short sellers to profit from a declined stock price." In 2020, Hindenberg accused electric truck maker Nikola of fraud, which also sent its share price slumping.

☆ Stocks making the biggest moves premarket: Deutsche Bank, Coinbase, Block, Marathon Oil and more
▼ + stars: | 2023-03-24 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

A Deutsche Bank AG flag flies outside the company's office on Wall Street in New York. Banks — Shares of U.S. banks fell as investors worried about the global banking system. First Republic Bank fell 3%, while Western Alliance , Zions Bancorporation and Fifth Third all lost more than 2%. Energy stocks — Energy names fell in in the premarket as oil prices slid, with investors worried about potential oversupply. Marathon Oil and Devon Energy fell about 3%.

☆ A key indicator says a recession is guaranteed in 2023 — and Bill Ackman, Nouriel Roubini, and others are warning of trouble ahead
▼ + stars: | 2023-03-24 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

From the central bank's latest rate hike to new developments in the ongoing bank crisis, a lot has happened in my absence. And all the while, Jerome Powell's favorite bond-market indicator is quietly telling us that a recession is all but guaranteed this year. Talk of basis points, yield spreads, and other market jargon is obscuring the key message here: Markets think a recession is guaranteed in 2023. How much credence as a recession signal do you give the bond market indicator? He said the current bank crisis isn't a redux of that era, or even of 2008.

☆ Here are Friday's biggest analyst calls: Nvidia, Tesla, Wendy's, Microsoft, Coinbase, Netflix & more
▼ + stars: | 2023-03-24 | by ( Michael Bloom | ) www.cnbc.com time to read: +5 min

Here are Friday's biggest calls on Wall Street: UBS reiterates Tesla as buy UBS said it's recent survey checks show Tesla is "best positioned" to win the EV race. Wells Fargo reiterates Microsoft as a top AI pick Wells said Microsoft is one of the biggest beneficiaries of AI. Jefferies downgrades UBS to hold from buy Jefferies said it sees too much uncertainty after the banking giant's acquisition of Credit Suisse. Jefferies upgrades Regeneron to buy from hold Jefferies said it's bullish on several of the pharmaceutical company's products. Citi reiterates Nvidia as buy Citi said Nvidia is a top beneficiary of AI.

☆ Things are pretty grim in real estate, but that could be a good thing for proptech startups in the long run
▼ + stars: | 2023-03-24 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Today, we've got stories on Deutsche Bank's tumbling shares, some bad news for Block, and why Gen Z might be in trouble. Of the many casualties of 2022, startups focusing on the real-estate market were some of the biggest. As the real-estate market dried up, thanks to rising interest rates, these companies that were meant to upend the industry through tech and innovation suddenly took a backseat. And while current conditions aren't ideal for proptech startups, that could actually benefit them in the long run. Click here to check out 26 of the hottest proptech startups set to take off in 2023.

Check out the companies making headlines in midday trading. GameStop -- The famed meme stock gained 2.5% in midday trading. The bank stock had been down about 14% after the bank's credit default swaps jumped without an apparent catalyst. Wells Fargo and JPMorgan — Shares of commercial bank giants were lower in midday trading, with Wells Fargo pulling back 2.3% while JPMorgan fell 2.2%. Activision Blizzard and Microsoft — Shares jumped 5% after the U.K. Competiton and Markets Authority dropped some of its concerns with the potential purchase of the company by Microsoft.

☆ Block shares extend losses as Hindenburg report weighs
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco Bello/File PhotoMarch 24 (Reuters) - Shares of Twitter co-founder Jack Dorsey's Block Inc (SQ.N) fell 4% in premarket trading on Friday, a day after the payments firm's Cash App business became the latest target of U.S. short seller Hindenburg Research. In a report, Hindenburg has alleged that Block overstated its user numbers and understated its customer acquisition costs. Block shares closed 15% lower on Thursday, giving up all the gains made so far this year. The report cited a non-profit organization to say that Cash App was also "by far" the top app used in reported U.S. sex trafficking.

☆ Premarket stocks: Americans are going all-in on cash. That could spell more trouble
▼ + stars: | 2023-03-24 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The goal of a money market fund is to provide investors with a relatively stable investment option that offers higher returns than traditional savings. What’s happening: Since the Fed began to raise interest rates a year ago, the amount of money in money market funds has increased by roughly $400 billion. Goldman Sachs economists wrote in a note on Thursday that Americans could sell as much as $1.1 trillion in stocks this year and put that money into credit and money market assets instead. Money market funds are deeply interconnected with the wider financial system, and often face the same risks as banks. The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and savings associations, does not insure cash invested in money market funds.

☆ Atlantic Equities downgrades Block on lack of clarity around Cash App after Hindenburg short
▼ + stars: | 2023-03-24 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Atlantic Equities is turning more cautious on shares of Block as it awaits more clarity on its Cash App product in the wake of Hindenburg Research's short position. Shares slumped 5% before the bell, building on a near 15% dive Thursday after Hindenburg Research revealed a short on Block, saying that its Cash App platform enables criminal activity, lacks strong compliance controls and uses predatory fees. Hindenburg also said Block inflates Cash App user metrics. SQ 1D mountain Block shares tumble Block responded to Hindenburg, saying that it plans to work with the Securities and Exchange Commission to explore legal action against the short seller. Looking ahead, Malde views illegal activity as the greatest risk for Cash App.

☆ Hindenburg takes aim at Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( Manya Saini | ) www.reuters.com time to read: +5 min

Block shares fell as much as 22% before paring losses and were last down 14% at $62.61 in afternoon trading. After reviewing the full report, Block said it was "designed to deceive and confuse investors". Hindenburg said that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. The app had 51 million monthly transacting actives, a 16% year-over-year increase during December 2022, Block said in fourth-quarter earnings letter. "What I am really concerned about is the Cash App, accusations of fraud, multiple accounts, opening accounts and fake names.

☆ Short Seller Hindenburg Says Jack Dorsey’s Payments Company Inflates User Numbers
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell more than 20% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

☆ Hindenburg shorts Jack Dorsey's payments firm Block, shares plunge
▼ + stars: | 2023-03-23 | by ( ) www.reuters.com time to read: +2 min

[1/2] The logo of Cash App is seen at the main hall during the Bitcoin Conference 2022 in Miami Beach, Florida, U.S. April 6, 2022. REUTERS/Marco BelloMarch 23 (Reuters) - Hindenburg Research on Thursday disclosed short positions in Block Inc (SQ.N) and alleged that the Jack Dorsey-led payments firm overstated its user numbers and understated its customer acquisition costs. Shares of Block slid 20% to $57.85 in premarket trading following the report. Hindenburg added that Block "obfuscates" how many individuals are on the Cash App platform by reporting misleading "transacting active" metrics filled with fake and duplicate accounts. Founded in 2017 by Nathan Anderson, Hindenburg is a forensic financial research firm that analyses equity, credit and derivatives.

☆ Shares of Jack Dorsey’s Block Fall on Short-Seller Report
▼ + stars: | 2023-03-23 | by ( Peter Rudegeair | ) www.wsj.com time to read: 1 min

Hindenburg said Jack Dorsey, Block Inc.’s chief and co-founder, has amassed a $5 billion personal fortune by taking advantage of Cash App’s users. Shares of the payments company formerly known as Square fell 13% in early trading Thursday after a short seller questioned the company’s user numbers and accused it of predatory tactics. Hindenburg Research said a two-year investigation into Block Inc. found the company “obfuscates” its Cash App service’s true user numbers by reporting misleading metrics “filled with fake and duplicate accounts.” It also accused the company of taking advantage of the demographics it claims to serve—lower-income people and minorities—with “predatory loans and fees.”

"Our 2-year investigation has concluded that Block has systematically taken advantage of the demographics it claims to be helping," the short seller said in its report. Up to 35% of Cash App's revenue is derived from interchange fees, Hindenburg alleged. But Block avoids that regulatory cap imposed on large financial institutions by routing the revenue through a small bank, Hindenburg alleged. The small-bank routing method is one employed by Block rival PayPal , the short seller claimed, and which prompted a Securities and Exchange Commission probe. Hindenburg took issue with Cash App's practices during the pandemic, when the government issued stimulus checks to qualified American adults.

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