Hindenburg Takes Short Position in Roblox, Alleges 9.2% Drop, Inflated Metrics, and 'Pedophile Hellscape'

Oct 8, 2024, 02:27 PM

Hindenburg Research has taken a short position in Roblox Corporation, alleging that the company has inflated its 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. It also highlights concerns about rampant bot activity and the presence of adult content, which poses a risk to child safety, describing the platform as a 'pedophile hellscape.' Following the release of the report, Roblox shares fell by 9.2% premarket. In response, Roblox has rejected the claims, stating that the financial allegations made by Hindenburg are misleading.