On October 8, 2024, Hindenburg Research issued a report entitled “Roblox: Inflated Key Metrics For Wall Street And a Pedophile Hellscape for Kids.” In this report, Hindenburg stated that its “research indicates that Roblox is lying to investors, regulators, and advertisers about the number of ‘people’ on its platform, inflating the key metric by 25-42%+.” Further, “[b]eyond inflated key user metrics, our in-game research revealed an X-rated pedophile hellscape, exposing children to grooming, pornography, violent content and extremely abusive speech.”
On this news, Roblox’s stock fell by 2.1% on October 8, 2024.
