Block update positive but fails to address key concern, says Mizuho

Block published yesterday a second response to last week’s short report, arguing that 44M of Cash App’s 51M monthly active users were connected to an identity verified through an identification program, and represent 39M unique social security numbers, Mizuho analyst Dan Dolev the analyst tells investors in a research note. The rebuttal is a "positive step, yet it fails to address a key concern," namely the amount of profit generated via illicit activity, says the firm. It says bad actors also have social security numbers. Mizuho hopes to hear more detail from Block in the coming weeks and keeps a Buy rating on the shares with an $85 price target.