Roblox (RBLX Stock): HINDENBURG SHORT REPORT UGLY!!

Earlier today Hindenburg announced a new short position and report about Roblox (RBLX stock) sending the shares lower. What are the key claims against the business and what are my thoughts about their arguments. What are my thoughts on RBLX stock and their valuation?

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[unrivaled]

While Roblox is a fast growing, and increasingly positive free cash flow business, the new short report from Hindenburg (and the Bear Cave before them) make investing in RBLX stock too hard for me! For more compelling ideas come check out www.unrivaledinvesting.com. By the way prices are going up soon, so NOW is the time to lock in the favorable rates!

[Dobbiy]

I develop projects on Roblox and I’ve noticed how the stock market distorts its reality. About 80% of the news about the company is exaggerated or false, damaging its image.

Despite significant investments in security and technology, with daily announcements on the DevForum, the platform is still seen as just a game, when in fact it’s a robust platform, like YouTube, the App Store, or Steam.

Roblox needs to improve its transparency and marketing. Epic Games, for example, despite having 10x fewer players on Fortnite, manages to maintain a positive image in the media. If Roblox followed this example, it could redefine its reputation and strengthen its place in the market.

[mrmo]

Roblox is one of the games I don't let my kid play

[InStevenWeTrust]

Even if they aren't bots, the kids that play Roblox are basically bots.

[gford]

Good timing. I have been debating whether to cut my losses with my Roblox stock. Was going to wait for the end of month earnings...however you(Daniel) are making me seriously think about pushing the sell button now

[Boersenwunder-]

Be careful..
The allegations in the Short Report are serious. Some funds will probably even be forced to throw Roblox out of their funds, not only because of the stock's downside potential, but also for ethical reasons alone..

[jslugger]

Roblox has a grip on kids I won’t lie but once parents realize how dangerous the Roblox platform is and the fact other adults has 100% access to your children any good parent would stop they kids from playing it

[johanwesthuyzen]

a lot of people targeting kids on RBLX for the wrong reasons

[RichardTN]

I'm sure he's right about the accounts being exaggerated. I'm just not sure the people who buy this stock care. With that said, I think the stock needs to go back to the $25-$30 range to consolidate. Most the people who bought this in the last 2 years are under water.

[freddiejonesy]

I love the stomach-soothing investments!

[LDP..]

They wont be able to compete with meta once they launch the metaverse imo

[KL-njoe]

I've made good money on RBLX. Zero position now.