What are they accusing here? Hindenburg. Research. Well, that's the big thing, Carol, is that this is a new take from the short seller, Nate Andersen. Hindenburg targeting that they are inflating or, according to Hindenburg, are inflating some of those metrics to appease investors. We've seen long discussed the issues potentially with the platform and child safety. Bloomberg had a terrific big tech in the summer titled Roadblocks Pedophile Problem. So that has been a well-discussed aspect. But those kind of allegations from Hindenburg that they have been inflating some of those metrics. Again, the company says that they reject those deemed in the report, but that's what's new, is that the company could at least, again, if you take it in BERG at face value, they're betting against the company could be boosting some of those numbers to allay any investor concerns that maybe they don't have the reach or the engagement that Wall Street is

looking for. Bailey, let's go to roadblocks, is response in full, and New York, let's bring you up on the screen. 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 roadblocks. This business model and results and what they go on to say is kind of a pushback against the thesis at the center of Hindenburg research, which is because this is a company which Hindenburg claims isn't profitable, that the claim is that misleading investors because they rely on a daily active user number and a people number that are the same. And if you read the footnotes of the disclosures, the footnotes read, you shouldn't rely on the daily active user number because it could include bots or it could include ALT accounts. In other words, one user holds multiple accounts. It's a hard one to follow, but just go

over the back and forth between the two parties. Bailey No, to your point, when you look at how Roblox or really any other media or video gaming platform is valued, whether you want to point to, as the company did, the amount of cash receipts or their bookings growth that is bullish for the company in their view. But to your point, what Hindenburg has laid out, looking at those metrics, they're looking at profitability in a string of unprofitable quarters you really have to take into consideration. Again, Hindenburg is betting against the company. The company is down 70% from its all-time high back in 2021. It has been on a string of losing kind of down days, down about 13, 14% from a September high. So it really depends how you want to value it. You can point through any short seller report really and say that they're cherry-picking data, which seems to be

kind of what Roblox is doing here. But also on the flip side, if you're an investor who's long the stock, you need to understand and kind of wrap your mind around the totality of that data. But that also could just be why we're seeing Roblox down 4%, kind of paring back some of those losses. I do just want to call out that we're at about nine times what is normal in terms of trading volume. More than 17 million shares already changing hands in the first hour and a half of today, which really is more than we would normally see in an entire session. We have Roblox's response. And of course, they've long been trying to show off ways in which they're trying to take on the safety concerns as well. I'm interested in that. This isn't the only voice of a bearish nature, though. And we've heard from Edwin Dorsey, for example, who writes multiple bearish

case. And actually, he doesn't take any bets on the stock. He just outlines why he's perhaps concerned about particular companies. So, is this a mounting view of concerns around numbers, or is this the first time, I think, as it relates directly to the user metrics, again, that that is new? From my understanding, that is not what Edwin Dorsey has targeted. That is not what Bloomberg and other outlets have reported, primarily around child safety and potentially putting profits over people. But these allegations in terms of potentially inflating numbers, to my knowledge, is new. And I have read and read, as I'm sure a number of viewers do have read, a lot of what Edwin Dorsey and Baquet put out. And again, they've been publishing on this company for quite some time. And their most recent report was just earlier this week, kind of incorporating some of their metrics in their latest report from last week.

But that really, from the barricade perspective, for the most part, at least, what I've read, focuses more on child safety, profits, and some of the or lack of safeguards.

Hindenburg Report Alleges Inflated Roblox Metrics

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