Roblox Faces Allegations of Inflated Metrics and Child Safety Risks

Hindenburg Research accuses Roblox of misleading investors and compromising child safety, prompting a sharp market reaction.

Hindenburg Research claims Roblox inflates daily active user metrics by 25-42% and engagement hours by over 100%.
The report accuses Roblox of creating a dangerous environment for children, exposing them to inappropriate content and insufficient moderation.
Roblox denies the allegations, stating that the claims are misleading and driven by Hindenburg's financial interest in short-selling.
Despite the accusations, Roblox's stock experienced volatility, initially dropping but later recovering in market trading.
Hindenburg's report highlights ongoing concerns about Roblox's moderation practices and reliance on bots to boost user engagement.