TD Cowen presents what the firm calls “circumstantial but strong evidence that the Roblox (RBLX) discovery algorithm is being aggressively manipulated by illegitimate account creation in the Philippines and Indonesia” and argues that it is “implausible to us that management is unaware of the issue.” The firm believes that “Grow a Garden,” which launched on Roblox on March 25 and has become the number one experience on Roblox, did so via “significant unusual user activity in ‘Philonesia’.” The firm, which also notes that Roblox management emphasized the fairness of their discovery algorithm on their earnings call just two weeks ago, reiterates a Sell rating and $40 price target on the shares.
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