00:00That's Hindenburg report. Yeah. Yeah. And then Berg is so Roblox getting Hindenburg. Yes. We're using it as a verb here
00:09Yeah inflated they're saying in Roblox has inflated key metrics and that there's also some child safety issues
00:17From what I can see from this short report
00:20Sounds it's very similar to a short report that was put out a couple years ago by Edwin Dorsey
00:25Who I've gotten to know over at the bear cave
00:28Maybe we'll have to bring Edwin on and talk about it because again, he put a short report out on Roblox
00:33Outlining these same exact issues that it looks like Hindenburg is now outlining now
00:38So, you know, it's always hard to tell in the immediate aftermath of when a short report comes out how much?
00:45You know weight does it hold how much does the market, you know?
00:49It usually comes down to like, you know the reputation of the person putting the short report out
00:53But then you got to go through and see okay, how much of this is like?
00:57usually there's truth in it, but how much of it is like fully true versus maybe the
01:02Short, you know report kind of exaggerating some of it
01:05But it sounds like if both of these short reports are saying the same exact thing that there might be some weight there
01:10For what they're saying here about Roblox data suggests the Roblox could be massively
01:16Overstating the true level of user engagement across its platform
01:20There's some pretty serious allegations here to saying that they're exaggerating numbers
01:26second quarter 2024
01:30Yeah there I'm just reading through it all there's so much information here
01:34It's gonna take us an hour to leave through all this but bottom line here is they're talking about inflating and numbers
01:41Obviously and the user engagement user engagement numbers, so that's getting head here
01:46It's always interesting Joel's point that the stock is very weak going into this, you know
01:52We've often talked about, you know, do these, you know short sellers front load it and then come in
01:57I mean, I think there's
02:00I know Jay mentioned that there was some of them that don't trade but that that doesn't mean you can't that some of them
02:07Don't actually put on trades. I don't yeah
02:10You know some of them do obviously there's a lawsuit against Citroen right now Andrew left is
02:16You know got a lawsuit going against them for you know, and I'm not saying, you know, everybody's entitled to their opinion
02:23Everybody's entitled to you know, say what they want to say
02:26So, you know freedom of speech is very, you know, you want to write a report and you're doing some great research
02:31We appreciate that as long as they're not just no reporting and then covering into it. I wouldn't have a problem with it
02:38So it depends on like if they're shorting it and they're issuing a report I don't think it's an issue
02:43I think the issue would be like the timing of like when you're covering it
02:47So that's I think with Citroen, you know, that's was you know
02:51Then I think the DOJ didn't like the timing of the of the covers
02:57Yeah, so again
03:01Spinner saying it might just be paid research only so we don't know this
03:05Someone got the research
03:07Hindenburg I tell you out of all of them. There's a lot of respect for Hindenburg
03:11There's a lot of respect for Hindenburg
03:13So there's definitely a hierarchy here of like, you know, how influential some of these reports are
03:21I mean you got anonymous shooting Panda over there shooting down stocks that we don't even know who they are
03:27Hindenburg has a lot of respect on the street
03:30So when they issue something like this, it's gonna move the stock and Wall Street's gonna take note, so
03:37I'll just say they're very well respected on the street at this time
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