Citron Research, the online stock commentary website run by the well-known activist short-seller Andrew Left, stung mobile payment processor Square Inc. with harsh comments that caused the company’s shares to fall on Monday.
Square is just a “collection of yawn businesses,” Citron said in a post on Twitter.
Late January, Square, founded by Twitter CEO and co-founder Jack Dorsey, launched Bitcoin trading on its Cash mobile payments app.
“WallSt drunk on Bitcoin nonsense, SQ-Cash to BTC trading has been insignificant,” Citron tweeted.
“Even w/ hyper growth still 40% too rich,” the research group added.
Citron said the short term price target for Square is $30. “15x rev growing slower than $FB,” the group noted.
Square said on Wednesday that the adjusted revenue from Bitcoin trading was $200,000 during the first quarter. Without adjusting the cost of buying Bitcoin, the revenue was $34 million.
Shares of Square fell nearly 6 percent on Wednesday due to disappointing second quarter earnings guidance.
Speaking on CNBC on Wednesday, Citron’s Left said Bitcoin only “keeps the focus away” from the core business.
by Jyotsna V