After Starboard activists, with former Pfizer chairman Ian Read in their corner, took aim at Pfizer's CEO, it's now Roblox's turn to be in the crosshairs of Hindenburg Research, the well-regarded short sellers.

Hindenburg's critique echoes what we noted in our earlier analysis of Roblox: the company seems to be yet another American tech firm prioritizing management's wealth over shareholder value.

The pattern is familiar. We highlighted that, beyond the "adjusted" metrics and glossy presentations, Roblox's operating losses were not just bad—they were getting worse each year. Alarmingly, these losses were deepening even as the company continued to grow.

Hindenburg adds a further twist by pointing out - with supporting evidence - that the number of users of its gaming platform had been artificially manipulated. In this respect, Hindenburg is far from unique. Our analysts were no different when they scrutinized another fallen glory of the American tech sector.

How can we be surprised by such abuses in a world where investors value companies primarily on the growth of their user base, and where managers receive billions of dollars in stock options with no regard for the viability - apart from quasi-permanent capital increases - of the operations for which they are responsible?

If Roblox is to counter these accusations, it will have to invest significantly in its control and moderation capabilities. This is likely to widen its operating deficit even further, unless sanity returns and order is restored to the store. And why not?

Over the last twelve flowing months, almost the entire operating loss is linked to stock options; over the last five financial years, two-thirds of the cumulative operating loss stems from these generosities...