RBLX Jan 2025 55.000 put
- Yahoo Finance Video
Roblox shares react to Hindenburg Research's latest report
In a new report, short seller Hindenburg Research claims gaming platform Roblox (RBLX) is inflating its user metrics and going so far as to allege an unsafe online environment for younger users. "The reason they think it's inflated is that they say that each user has the potential to open up many alternate accounts. And people do... I don't think the vast majority do, but some do. So they're they're measuring users and... they might say 79.5 million daily active users when the number, according to Hindenburg, is 22% lower than that," Wedbush managing director of equity research Michael Pachter explains. "So let's just say 60 million. Who cares? The revenues went up from $2.8 billion to $3.5 billion from '22 to '23, and they're going up again to $4.2 billion this year. Pachter joins the Catalysts team to explore the content of the report, citing Bloomberg's July investigation into cracking down on predatory behavior, finding Hindenburg's data to be based on a "shaky, shaky foundation." Yahoo Finance received a response from a Roblox spokesperson after this segment's airing: "We totally reject the claims made in the report. The financial claims made by Hindenburg Research are simply misleading. The authors are, admittedly short sellers and have an agenda irrespective of the substance of Roblox’ business model and results... We firmly believe that Roblox is a safe and secure platform and in the financial metrics we report." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Luke Carberry Mogan.
- Yahoo Finance Video
Roblox, Hershey, Samsung: 3 Stocks In Focus
Morning Brief hosts Seana Smith and Brad Smith analyze the top trending tickers on the Yahoo Finance platform: Roblox (RBLX) is in focus after Hindenburg Research alleged that the gaming platform's metrics are inflated and there are reputational risks for advertisers who use it. Hershey's (HSY) stock is under pressure following a downgrade from UBS Securities, lowering its rating from Buy to Neutral. The firm cites rising cocoa prices (CC=F) as a potential threat to gross margins and has also reduced its price target on the stock. Samsung (005930.KS) has issued a profit warning for the third quarter, citing intense competition and delivery delays as key factors. The tech giant has taken the unusual step of publicly apologizing for its underperformance. For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Angel Smith
- Fortune
Bombshell report claims Roblox is ‘pedophile hellscape’
The company’s stock fell as much as 9% following the report.
