Roblox ecosystem appears unmoved following report on inflated numbers and child safety issues
On Oct. 8, activist short-selling firm Hindenburg Research released a report alleging inflated numbers and child safety issues on Roblox. Just over a month after its publication, however, neither investors nor media buyers seem to have been deterred by the report.
Founded by investor Nathan Anderson in 2017, Hindenburg Research is an investment firm that investigates perceived malpractices by publicly traded companies, then takes short positions in those companies before publishing reports detailing its findings. Hindenburg’s Roblox report primarily focused on two potential challenges: inflated metrics due to bots and users with multiple accounts, as well as pervasive child safety issues. (Hindenburg Research did not respond to a request for comment.)
As it stands, Hindenburg Research’s short position does not appear to have paid off yet. Although Roblox’s share price dipped by as much as 9 percent in the hours following the publication of the report, it has since bounced back to its highest point since 2022, experiencing a significant boost following Roblox’s Q3 2024 earnings call on Oct. 31.
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Source:: Digiday
