Official announcements from regulatory bodies like the SEC

Hindenburg Takes Short Position on Roblox, Shares Fall 9%

Oct 8, 2024, 01:51 PM

Hindenburg Research has issued a critical report on Roblox Corporation, alleging that the company has inflated key user metrics and allowed inappropriate content on its platform. The report claims that Roblox has misled investors, regulators, and advertisers by overstating its active user numbers by 25-42% and failing to moderate harmful content, which includes adult themes and potential grooming risks for children. Hindenburg has taken a short position in Roblox, describing the platform as a 'pedophile hellscape.' Following the release of the report, Roblox shares fell by approximately 9% in pre-market trading. Roblox has responded to the allegations, stating that it 'totally rejects' the claims made by Hindenburg, asserting that the financial claims are 'simply misleading.'