Roblox's stock dropped 10% after short-seller Hindenburg accused it of inflating user numbers. Some of Hindenburg's previous reports have led to SEC investigations and indictments.

Roblox shares rocketed up by more than 21% Wednesday as investors reacted positively to the online gaming platform company's better-than-expected fourth-quarter bookings.

Roblox Posts Strong Q4; Underlying Metrics Drive Impressive Booking Growth Online video game platform continues to improve its reach with older gamers.

Roblox (RBLX) released its December metrics on Tuesday, stating that it had 61.5M daily active users who spent 4.7B hours on the platform.

Raymond James analyst Andy Marck downgraded Roblox from a Strong Buy rating to an Outperform rating and raised the price target from $81 to $130.

User and engagement numbers were also strong for gaming platform Roblox, with daily active users up 41% year over year, and hours engaged up 58%.

Roblox Corp on Wednesday became the latest U.S. company to report a hit from a stronger dollar, saying its bookings fell up to 11% last month despite a jump in daily active users.