3 Shorted Stocks on the Rebound

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Super Micro Computer Inc Nieuws

Block Inc,Roblox Corp

Stocks Analysis by Jea Yu covering: Super Micro Computer Inc, Block Inc, Roblox Corp. Read Jea Yu 's latest article on Investing.com

Short sellers are getting a lot of airplay these days, especially the ones that can severely crumble a stock's price after releasing their reports upon announcing their short position. Many of these short seller reports may have valid data and reasoning that warrant a stock price sell-off, while many allegations are often unsubstantiated. Short sellers are very careful in selecting their words to avoid having their reports construed as investment advice or face libel charges.

This purposely gives the impression more people are coming to the site when DAU is not indicative of people but accounts. Hindenburg claims to have interviewed former employees who claim the real number of people on the site could be 30% less than its stated DAUs. Hindenburg claims Block inflated user metrics to prop up the stock so insiders could sell over $1 billion of stock. The M.O. may sound familiar because Hindenburg regularly purports that companies are perpetrating pump-and-dump schemes so insiders can cash out their shares at artificially inflated prices.As is often the case, Hindenburg claims to have interviewed a number of unnamed sources who were former insiders and employees.

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