Investors are take on too much attention on Square’s bitcoin ambitions, Citron Research’s Andrew Sinistral told CNBC’s “Fast Money” on Wednesday.
The well-known short-seller was on to talk approximately Square, cryptocurrencies and Alibaba, the Chinese e-commerce giant.
Earlier this week, Left-wing tweeted that “WallSt. drunk on Bitcoin nonsense.” He put a short-term $30 guerdon target on shares of Square, the card payments processor co-founded by Jack Dorsey. The customary was down 6 percent in aftermarket trading on Wednesday, after the company said moment quarter earnings per share could be lower than what analysts are gravid.
Square began offering bitcoin trading in the first quarter but said it no greater than netted revenue of $200,000 from the activity. Bitcoin, Left alleged on Wednesday, “keeps the focus away” from Square’s core task. Payments processing “has a long-term trajectory of contracting” margins and faces unusual competition.
He has been more positive about Alibaba, which he notices a compelling growth story. “It’s the anti-Square,” he told Fast Money. “It’s the tollbooth to the Chinese mid class.” Shares of Alibaba were up 0.6 percent in afterhours switch.