3 stocks that recovered after the short-seller attack
Recently, short-sellers have been gaining more and more attention. They are investors who bet on a decline in stock values and often issue reports full of criticism of the companies they have bet on. These reports can have varying degrees of veracity and sometimes lead to a significant drop in share value. Although the short-term effects are usually felt, many companies recover from these attacks and their shares can rebound.
That's why today we look at three companies in the technology sector that were targeted by short-sellers but managed to bounce back.
Roblox Corp. $RBLX
Roblox, a popular online gaming platform, was the target of an October 2024 report from well-known firm Hindenburg Research. The latter accused the company of overstating the number of daily active users (DAUs), which was allegedly intended to mislead investors and artificially inflate the stock's value. The report claimed that some users were managing multiple accounts, misrepresenting the actual number of real…