NEW YORK, Aug. 15, 2025 (GLOBE NEWSWIRE) -- WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Reddit, Inc. (NYSE: RDDT) between October 29, 2024 and May 20, 2025, both dates inclusive (the “Class Period”), of the important August 18, 2025 lead plaintiff deadline. SO WHAT: If you purchased Reddit securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. WHAT TO DO ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Reddit, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on August 18, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - A class action lawsuit has been filed against Reddit, Inc. for allegedly making false and misleading statements regarding user engagement and advertising revenues during the Class Period [4]. - The lawsuit claims that changes in Google Search's algorithm led to a significant reduction in traffic to Reddit, which was not disclosed by the defendants [4]. - Investors are encouraged to join the class action by contacting Rosen Law Firm for more information [2][5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3]. - Founding partner Laurence Rosen has been recognized as a Titan of Plaintiffs' Bar by Law360, highlighting the firm's expertise in this area [3].

Core Insights - Moore Law, PLLC is investigating potential claims against Reddit Inc. due to allegations of materially false and misleading statements regarding user engagement and advertising revenues [1][2] - The investigation highlights that changes in Google Search's algorithm, particularly features like AI Overview, have led to a significant decline in traffic to Reddit, as users are finding answers directly on Google without visiting Reddit [1] - Reddit's outlook on user rates and advertising revenues is deemed unreasonable due to the impact of these algorithm changes [2] Company Specifics - The investigation focuses on the awareness of Reddit's management regarding the increase in the search term "Reddit" on search engines, which is attributed to users receiving answers from Google rather than intending to visit Reddit [1] - The zero-click search phenomenon is identified as a critical factor that has dramatically reduced traffic to Reddit, creating challenges that the company is currently unable to overcome in the short term [1] Legal Context - Shareholders of Reddit Inc. may seek monetary damages, corporate governance reforms, and reimbursement through the investigation led by Moore Law, with representation offered on a contingency fee basis [2]

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Reddit, Inc. securities during the specified Class Period of the upcoming lead plaintiff deadline on August 18, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - A class action lawsuit has been filed against Reddit, Inc. for allegedly making false and misleading statements regarding user engagement and advertising revenues during the Class Period [4]. - The lawsuit claims that changes in Google Search's algorithm led to a significant reduction in traffic to Reddit, which was not disclosed by the defendants [4]. - Investors are encouraged to join the class action and can do so by contacting Rosen Law Firm for more information [2][5]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time and being ranked No. 1 for securities class action settlements in 2017 [3]. - The firm has recovered hundreds of millions of dollars for investors, including over $438 million in 2019 alone [3]. - Founding partner Laurence Rosen has been recognized as a Titan of Plaintiffs' Bar by Law360, highlighting the firm's expertise in this area [3].

Core Insights - Reddit has reported its most profitable quarter with significant revenue growth and user engagement [2][3] - The company is focusing on international expansion and leveraging AI to enhance its platform [8][9] Financial Performance - Reddit's revenue for the second quarter reached $500 million, representing a 78% increase year-over-year, marking the fastest quarterly growth since 2022 [2] - Daily active users increased by 21% to 110 million, with a profit of $89 million and earnings per share of $0.48, compared to a loss of $10 million and a loss per share of $0.06 in the same quarter of the previous year [3] Future Guidance - For Q3, Reddit projects revenue between $535 million and $545 million, indicating a 55% year-over-year growth [5] - The company is targeting international markets, with international revenue increasing by 71% to $91 million in the second quarter [8] Strategic Initiatives - Reddit is implementing machine translation to expand its presence in Asia, Europe, and Latin America, aiming to support around two dozen languages [8] - The introduction of the Reddit Answers tool, an AI-driven search engine, has seen user growth from 1 million in Q1 to 6 million in Q2, enhancing the platform's relevance [9] Investment Considerations - Despite strong performance, Reddit's stock is considered expensive compared to competitors like Meta and Snap, with a 260% increase in the last year [10] - While Reddit is viewed as a solid investment, it is suggested that potential investors wait for a more favorable buying opportunity [11]

Core Viewpoint - Reddit has successfully positioned itself in the online market, showing potential for significant stock price growth compared to peers like Meta and Snap [1][2]. Financial Performance - Reddit's Q2 revenue increased by 78% year-over-year to $500 million, driven by a remarkable 84% rise in ad sales to $465 million [5]. - The company reported a profit of $89 million, a turnaround from a $10 million loss in the same quarter of 2024, with free cash flow rising by $84 million to $111 million [5]. - For Q3, Reddit projects revenue between $535 million and $545 million, with adjusted EBITDA expected to be between $185 million and $195 million, surpassing analyst expectations [6]. User Engagement - Daily active unique users (DAUq) grew by 21% year-over-year, exceeding 21 million [6]. - The company's initiatives, such as dynamic product ads and AI tools for ad creation, have contributed to increased user engagement and targeted advertising [8][9]. Market Position and Growth Potential - Analysts predict nearly 60% annual revenue growth for Reddit in 2025, with a 31% increase in 2026, alongside a significant improvement in per-share profitability [12]. - In contrast, revenue and profitability growth for Meta and Snap are expected to be much lower during the same period [13]. Valuation - Reddit's forward price-to-earnings ratio stands at 121, significantly higher than Snap's under 37 and Meta's sub-29, reflecting strong investor interest due to its high performance and growth potential [14].

Core Viewpoint - Reddit Inc. (RDDT) is showing potential as a stock pick due to a recent "golden cross" event, indicating a bullish trend may be forthcoming [1][2]. Technical Analysis - A "golden cross" occurs when a stock's short-term moving average (50-day) crosses above its long-term moving average (200-day), suggesting a bullish breakout [2]. - The formation of a golden cross involves three stages: a downtrend that bottoms out, the crossover of moving averages, and subsequent upward momentum [3]. Performance Metrics - Over the past four weeks, RDDT has gained 48.1%, indicating strong upward movement [4]. - RDDT currently holds a 1 (Strong Buy) rating on the Zacks Rank, further suggesting potential for a breakout [4]. - Earnings expectations for RDDT have improved, with 11 upward revisions in estimates over the past 60 days, and no downward revisions, indicating positive sentiment among analysts [4][6].

Group 1 - The core viewpoint is that Reddit Inc. (RDDT) shows a significant improvement in its earnings outlook, making it an attractive investment option [1][3] - Analysts are increasingly optimistic about Reddit's earnings prospects, leading to higher earnings estimates, which are expected to positively impact the stock price [2][3] - The Zacks Rank system, which rates stocks from 1 (Strong Buy) to 5 (Strong Sell), indicates that Reddit Inc. has achieved a Zacks Rank 1 due to strong agreement among analysts in revising earnings estimates upward [3][7] Group 2 - For the current quarter, Reddit Inc. is expected to earn $0.49 per share, reflecting a remarkable increase of +206.3% compared to the previous year, with a 53.55% rise in the Zacks Consensus Estimate over the last 30 days [5][6] - The full-year earnings estimate stands at $1.81 per share, representing a +154.4% change from the year-ago figure, with 11 estimates moving up recently and no negative revisions [6][8] - The stock has appreciated by 46.1% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [8]

Core Insights - Reddit (RDDT) and Snap (SNAP) are competing for digital ad budgets, with Reddit focusing on community engagement and Snap on visual messaging and AR experiences [1][2] - Both platforms are investing in AI to enhance ad targeting and campaign performance [1][2] Digital Advertising Market - The global social media ad market is expected to grow from $228.18 billion in 2024 to $406.64 billion by 2029, at a CAGR of 12.25% [2] - Brands are increasingly seeking platforms with personalized reach and engaged audiences, benefiting both Reddit and Snap [2] Reddit's Position - Reddit has over 100,000 active subreddits, with Reddit Answers reaching 6 million weekly active users in Q2 2025, a 5x increase sequentially [4][11] - Ad revenues for Reddit grew 84% year over year to $465 million in Q2 2025, with a consensus estimate of $438.33 million for Q3 2025 [6][12] - Daily Active Uniques (DAUq) rose 21% year over year to 110.4 million in Q2 2025, with a consensus estimate of 113.17 million for Q3 2025 [7] Snap's Position - Snap's global user base reached 469 million DAUs in Q2 2025, an 8.6% year-over-year increase [8] - The Snapchat+ subscriber base approached 16 million, supported by new offerings like Lens+ [9][11] - Commerce-driven ad volume grew 39% year over year in Q2 2025, with newer ad formats like Sponsored Snaps showing stronger conversion outcomes [10][12] Financial Performance and Valuation - RDDT shares have increased by 30.2% year-to-date, while SNAP shares have declined by 27.7% [13] - RDDT trades at 17.35X forward Price/Sales, significantly higher than SNAP's 2.09X [11][16] - The Zacks Consensus Estimate for Reddit's Q3 2025 earnings is 34 cents per share, a 112.5% increase year over year, while SNAP's estimate is 4 cents per share, a 50% decline year over year [18] Investment Outlook - Reddit is building momentum through community engagement and improving ad tools, but its monetization model is still evolving [19] - Snap offers a more mature platform with a broader global footprint and deeper youth traction, making it a more attractive investment option [20]

Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. for allegedly misleading investors regarding its user growth and advertising revenue, particularly in light of changes to Google's search algorithm that negatively impacted Reddit's traffic [3][4]. Group 1: Class Action Details - The class action represents investors who purchased Reddit securities between October 29, 2024, and May 20, 2025, with a deadline of August 18, 2025, to file a lead plaintiff motion [1]. - The Portnoy Law Firm is offering complimentary case evaluations to affected investors [2]. Group 2: Allegations Against Reddit - The lawsuit claims that Reddit made false statements and failed to disclose that changes to Google Search's algorithm were significantly reducing user click-throughs to Reddit [3]. - It is alleged that the increase in searches for "Reddit" did not indicate genuine user intent to visit the site, as users were finding answers directly on Google [3]. - The complaint states that these changes led to a significant drop in traffic that Reddit could not quickly offset, undermining its guidance on user growth and advertising revenue [3]. Group 3: Financial Impact and Analyst Reactions - On May 1, 2025, Reddit reported its Q1 2025 financial results, revealing a third consecutive quarter of slowing daily active user growth, which caused a decline in its stock price [4]. - Following this, Wells Fargo analysts downgraded Reddit's stock and lowered their price target to $115, citing Google's AI features as a potential permanent disruption to Reddit's user traffic [4]. - On May 21, 2025, Baird analysts also downgraded Reddit's stock, cutting their price target to $120 due to ongoing user growth challenges, resulting in a stock decline of over 9% [5].