Short seller Hindenburg Research said it's betting against the gaming platform Roblox, saying in its report that it inflated key metrics and lacks sufficient steps to provide child safety. Bloomberg's Bailey Lipschultz joins Caroline Hyde and Ed Ludlow to discuss.
CNBC's Steve Kovach joins 'The Exchange' with details about Hindenburg's accusations against Roblox.
Hindenburg research has initiated a short position against the Roblox stock, citing fake user metrics to boost growth potential of the company.
Bryn Talkington, Managing Partner of Requisite Capital Management, joins CNBC's "Halftime Report" to react to the Hindenburg short report.
Roblox (RBLX) shares slumped Tuesday after short seller Hindenburg Research accused the online gaming platform of overstating its user numbers.
Shares of Roblox (RBLX, Financial) experienced a significant decline, dropping by 4.13%. This downturn comes in the wake of a report by Hindenburg Research which raises concerns about the company's reported metrics.
Roblox Corp. shares are down 3.3% Tuesday after short seller Hindenburg Research alleged that the online gaming company has inflated key metrics.
It is the latest target of Hindenburg, whose reports have knocked shares of companies owned by billionaire-investor Carl Icahn and India's Gautam Adani.
Roblox Corp (NYSE:RBLX) shares moved lower after Hindenburg Research disclosed a short position in the gaming platform, alleging it inflated metrics including user numbers. Hindenburg Research alleges that Roblox is intentionally conflating “people” with daily active users (DAUs).
Roblox Corp. shares slumped Tuesday after short seller Hindenburg Research said it's betting against the gaming platform. Hindenburg says Roblox has inflated key metrics and there are safety issues.
On October 8, noted activist short-selling group Hindenburg Research released a report alleging that Roblox (NYSE: RBLX) has been reporting inflated metrics.
In early trading, Roblox (RBLX, Financial) saw its stock price dip over 9.3%, reaching a low of $37.51, before narrowing its losses to around 5%. The volatility comes as Hindenburg Research, a well-known short-selling firm, announced its short position on the company.