Why Are Block (SQ) Shares Moving Higher Today - Block (NYSE:SQ)

Block, Inc's SQ shares are trading higher today as it prepares to report results on Thursday after markets close.
Block's first-quarter results could see investors skyrocket in on the payments firm's Cash App business following U.S. short-seller Hindenburg Research's allegations, including inflated user count.
Morgan Stanley analysts in April said that some bearish investors remain uncertain about the amount of gross profit from "potential illicit activity" on the Cash App platform.
Eventually, bears suspect a meaningful amount of gross profit might come under pressure if regulators crack down on Cash App, making it challenging to accept Cash App as a legitimate, trusted bank in the long term, Reuters cites Morgan Stanley analysts.
Block's revenue growth took a hit over the past few quarters as inflationary pressures forced consumers to defer big-ticket purchases.
Hindenburg had accused Block of overstating its user numbers by allowing fake or duplicate accounts on its Cash App platform.
Cash App reported 51 million monthly active customers as of December 31, including 44 million verified customers.
Wall Street analysts expect more transparency from Block over how it reports user count on Cash App and address concerns flagged by the report, including its weak know-your-customer (KYC) compliance.
Price Action: SQ shares traded higher by 3.00% at $59.50 on the last check Wednesday.

Why Are Block Shares Moving Higher Today