The research firm Hindenburg Research has released a report accusing the creators of Roblox of misleading investors, advertisers, and other stakeholders.

Hindenburg claims that the developers of the popular gaming platform are hiding information from investors to fuel the growth of the project. Roblox developers responded to these accusations with a statement, in which the financial conclusions in Hindenburg's report were dismissed as false.

However, media outlets found the information in Hindenburg's document to be very detailed, while Roblox's response was seen as lacking in substance. The Hindenburg report points out that Roblox is not profitable, but the platform’s growth metrics are allegedly presented in a way to inflate the stock price.

Additionally, Hindenburg claims that user engagement figures on the platform are exaggerated by about 100% compared to the reality. According to recent data, Roblox reportedly attracts nearly 80 million active users daily, with each user spending an average of 2.4 hours on the platform. However, the report suggests that bots are included in these statistics, raising doubts about the accuracy. According to Hindenburg, the platform actually attracts 30.4 million unique users daily, with each user spending an average of just 22 minutes on Roblox.

It is important to know that Hindenburg Research can't be called totally impartial. It is known for its activism and short selling strategy. To describe it in a couple phrases: you bet on shares to drop in a short time and earn money on the difference. At the moment of writing, this trick didn't work in the Roblox case.

Main image: alphacoders.com

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