Hindenburg Takes Short Position in Roblox; Shares Down 10%, Alleges 'Pedophile Hellscape'

Oct 8, 2024, 12:54 PM

Hindenburg Research has taken a short position in shares of Roblox Corporation, alleging that the company has inflated key metrics for Wall Street and created a dangerous environment for children. The report claims Roblox is misleading investors, regulators, and advertisers by inflating its active user numbers by 25-42%. It also highlights rampant bot activity on the platform and describes Roblox as a 'pedophile hellscape.' Following the release of the report, Roblox shares fell by 10% in premarket trading. Hindenburg criticizes Roblox's 'growth at all costs' approach.