Roblox Tumbles as Hindenburg Bets Against Gaming Platform (3)

Roblox Corp. shares slumped Tuesday after short seller Hindenburg Research said it’s betting against the gaming platform.

The stock fell as much as 9.4% in intraday trading Tuesday in New York, hitting the lowest level since early August. The online gaming company’s stock has shed more than 15% so far this year.

Hindenburg said in its report that Roblox has inflated key metrics and alleged that it doesn’t have sufficient safety screens to prevent pedophiles from using the platform.

“We totally reject the claims made in the report,” a Roblox spokesperson said in a statement. “The authors are, admittedly ...