Hindenburg Takes Short Position on Roblox, Shares Fall 9.2% Amid Allegations

Oct 8, 2024, 02:15 PM

Hindenburg Research has issued a critical report on Roblox Corporation, alleging that the company has inflated key user metrics and allowed unsafe content on its platform, calling it a 'pedophile hellscape.' The report claims that Roblox misled investors by overstating daily active users and engagement hours by 25-42%. Additionally, Hindenburg accused Roblox of creating a dangerous environment for children by failing to moderate content effectively. In response, Roblox shares fell by 9.2% in premarket trading. Hindenburg has taken a short position in Roblox. Roblox has denied the allegations, stating that the claims made by Hindenburg are misleading and that the company rejects the report's assertions.