Roblox Denies Allegations of Inflated Metrics, Safety Issues

Hindenburg Research has released a report accusing Roblox of inflating its user metrics and fostering an unsafe environment for children, leading to a significant decline in Roblox's stock value. The report claims that Roblox's daily active users count is overstated by 25% to 42% and alleges that the platform is a 'pedophile hellscape' where children are exposed to grooming and explicit content. Hindenburg further suggests that Roblox exaggerates user engagement hours, with the company reporting an average of 2.4 hours per day per user, which is allegedly double the actual figure. Roblox has denied these allegations, labeling them as misleading and driven by Hindenburg's financial interests as a short seller. The controversy has raised concerns over child safety and the accuracy of metrics, impacting investor confidence in the platform. This situation highlights ongoing issues with Roblox's user management and safety protocols, as previously reported by Bloomberg.