Hindenburg Research Takes Short Position in Roblox, Shares Fall 9.2%

Oct 8, 2024, 01:53 PM

Hindenburg Research has taken a short position in Roblox Corporation, alleging that the company has inflated key user metrics and allowed inappropriate content on its platform. The report claims that Roblox has overstated its daily active users and engagement hours by 25-42%, misleading investors, regulators, and advertisers. Additionally, Hindenburg's report describes the platform as a 'pedophile hellscape' due to insufficient content moderation. Following the release of the report, Roblox shares fell by 9.2% in premarket trading. In response, Roblox has rejected the claims, stating that the financial allegations made by Hindenburg are 'simply misleading.'