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Roblox stock price reaction to Hindenburg report by end of 2024
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Story
Hindenburg Takes Short Position, Roblox Shares Fall 9.2% Amid Inflated Metrics Allegations
Oct 8, 2024, 01:49 PM
Hindenburg Research has issued a damning report on Roblox Corporation, alleging that the company has been inflating its key user metrics and allowing dangerous content on its platform. The report claims that Roblox has been misleading investors, regulators, and advertisers by overstating its daily active users (DAUs) and engagement hours by 25-42%. Additionally, Hindenburg accuses Roblox of being a 'pedophile hellscape' due to insufficient content moderation, which allegedly allows predators to exploit young users. The report also highlights rampant bot activity on the platform. Following the release of the report, Roblox shares fell by 9.2% premarket. Hindenburg has taken a short position in Roblox shares. Roblox has responded by rejecting the claims made by Hindenburg, stating that the financial claims are 'simply misleading.'
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