A bombshell report from famed activist short-selling firm Hindenburg Research caused Roblox’s stock to plummet by as much as 9% in intraday trading after it accused the company of overinflating its user metrics and fostering an unsafe environment for underage users.
The short-seller, which disclosed a bet against the public company, claimed that Roblox was inflating the number of people visiting its platform by 25% to 42% and possibly overstating the number of engagement hours users spent on the site by more than double. Roblox’s stock closed down 2.13% following the news at about $40.51 on Tuesday afternoon.
