Should Roblox Investors Be Worried About the SEC Investigation Involving the Company?

Roblox (NYSE: RBLX) operates a hugely popular gaming platform that attracts millions of users every day. With a staggering 40 million games on Roblox, there's a ton of content out there to keep people coming back. It also has a ton of promise when it comes to monetizing its platform via ads. Despite all this potential, however, it still carries plenty of risk for investors. The company isn't profitable. A recent short-seller report questioned how the company handled the matter of keeping kids safe on its platform. And the Securities and Exchange Commission (SEC) is investigating the business. Are investors better off avoiding Roblox stock?According to news reports last month, the SEC has an ongoing "active investigation" into Roblox. So far, no details regarding what that investigation is about have been made public, but it may have to do with a short-seller report that was released last year. In October, Hindenburg Research (which announced this year that it was shutting down) alleged that the gaming company not only inflated key metrics but also didn't do enough to protect the younger users on its platform. More than half of Roblox's users are under 16. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool