Hindenburg Research says the videogame platform “is compromising child safety in order to report growth to investors.”
Roblox Corp RBLX stock plunged on Tuesday after Hindenburg Research issued a short report on the online game platform questioning its metrics such as user numbers.
Influential short seller Hindenburg Research revealed Tuesday it took a short position against kids-oriented video game platform Roblox, accusing the company of inflating key metrics of user engagement and of inadequately protecting children from disturbing content, causing Roblox's share price to tumble.
The research firm alleges that the videogame company has exaggerated user data and engagement figures.
Hindenburg Research on Tuesday disclosed a short position in Roblox , saying the videogame company has been lying to investors and regulators about the number of users on its platform.
Roblox (RBLX) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
In the closing of the recent trading day, Roblox (RBLX) stood at $41.99, denoting a -0.45% change from the preceding trading day.
Roblox is benefitting from unit economies, with bookings growth outpacing the growth in fixed growth. I expect Roblox to exceed management's full-year guidance for bookings and free cash flow.
In the latest trading session, Roblox (RBLX) closed at $44.18, marking a -1.54% move from the previous day.
Metaverse stocks may not be fashionable anymore, but Roblox deserves a look.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
In the closing of the recent trading day, Roblox (RBLX) stood at $46.03, denoting a -0.58% change from the preceding trading day.