Investors can contact the law firm at no cost to learn more about recovering their losses LOS ANGELES, Oct. 09, 2024 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Roblox Corporation ("Roblox" or "the Company") (NYSE: RBLX) investors that the firm has initiated an investigation into possible securities fraud and may file a class action on behalf of investors. Roblox investors that lost money on their investment are encouraged to contact Lesley Portnoy, Esq. Investors are encouraged to contact attorney Les ...

Every once in a while, a few stocks come under attack from short-selling firms or, essentially, by anyone that doesn't align with that stock's business or interests. It is tricky for retail investors to figure out whether short reports and attacks have any traction since they can often sound convincing enough to get people to sell – or even short – said stock. Roblox Today RBLX Roblox $41.35 +0.84 (+2.07%) 52-Week Range $29.55 ▼ $48.43 Price Target $44.81 Add to Watchlist Today, investors might be faced wit ...

NEWTOWN, Pa., Oct. 8, 2024 /PRNewswire/ -- Edelson Lechtzin LLP, a leading class action law firm, is investigating potential securities fraud and breach of fiduciary duty claims on behalf of investors in Roblox Corporation (NASDAQ: RBLX) common stock. Roblox investors with substantial losses and witnesses with non-public information about the company are urged to contact Edelson Lechtzin LLP at 844-696-7492, by e-mail at [email protected], or online HERE. THE ALLEGED WRONGDOING: Roblox, based in San Mateo, ...

Key Takeaways Roblox is accused by short seller Hindenburg Research of lying about its user data. The news sent its shares lower on Tuesday. The researchers claim Roblox inflates the number of users and the time they are playing games on the site. Hindenburg also claimed Roblox exposes children to dangerous material. Roblox (RBLX) shares slumped Tuesday after short seller Hindenburg Research accused the online gaming platform of overstating its user numbers. Hindenburg in report said that Roblox "is lying t ...

Hindenburg Research disclosed a short position in Roblox on Tuesday, alleging that the gaming platform popular among young children inflated metrics including user numbers and engagement. Roblox shares fell as much as 9% after the short seller said the company conflated daily active users (DAUs) with the number of people visiting its platform. The stock was recently down 3% at $40.06. This was based on its definition that the metric is not a measure of "unique individuals accessing Roblox," Hindenburg said, ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Core Viewpoint - Hindenburg Research has released a report alleging that Roblox has inflated its user metrics, which could pose risks for advertisers and the company's reputation [1][3]. Group 1: Allegations of Inflated Metrics - Hindenburg Research claims that Roblox has overstated its daily active users (DAUs) by 25% to 42% to attract advertisers, suggesting that the actual user growth is stalling [3]. - Roblox asserts it has over 65 million DAUs, but Hindenburg indicates these figures may be exaggerated, with evidence of bots allowing individuals to manage multiple accounts [3]. - Roblox's disclosures state that DAUs are not a measure of unique individuals, and former employees have indicated that the company tracks multiple accounts internally [3][4]. Group 2: Engagement Metrics Concerns - The report questions Roblox's claim of an average engagement of 2.4 hours per user per day, which is 58% higher than the average gaming time for its target demographic of 8 to 12-year-olds [4]. - If accurate, this engagement metric would surpass popular social media platforms by 26% to 166%, raising further doubts about its legitimacy [4]. Group 3: Risks for Advertisers - The inflated metrics could undermine advertiser confidence, threatening a significant revenue stream for Roblox [5]. - Companies may face lower returns on ad spend and reputational risks by associating with Roblox, especially given the presence of inappropriate content on the platform [5]. Group 4: Insider Activity and Management Changes - There has been a notable increase in insider selling over the past year, alongside the resignation of key executives, including the CFO, CTO, and CMCO [5][6]. - The overall outlook for Roblox appears bleak, with potential regulatory scrutiny and investor mistrust likely to follow the report's findings [6].

In early trading, Roblox (RBLX, Financial) saw its stock price dip over 9.3%, reaching a low of $37.51, before narrowing its losses to around 5%. The volatility comes as Hindenburg Research, a well-known short-selling firm, announced its short position on the company. The firm accuses Roblox of misstating the number of users on its platform to both investors and regulators. ...

Topline Influential short seller Hindenburg Research revealed Tuesday it took a short position against kids-oriented video game platform Roblox, accusing the company of inflating key metrics of user engagement and of inadequately protecting children from disturbing content, causing Roblox's share price to tumble. Roblox went public in 2021, and had a roughly $25 billion market value as of Tuesday, about a third ... [+] of its peak valuation of more than $75 billion in late 2021 as its share price faded alon ...

Roblox (RBLX) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system. Since a changing e ...