Group 1: Reddit - Reddit's stock has experienced significant volatility in 2025, down 13% year to date, with fluctuations of up to 37% increase and nearly 46% decrease [3][4] - The company has over 108 million daily average users and reported a revenue growth of 61% in its most recent quarterly report [4][6] - Reddit's advertising model is still in its early stages compared to Meta Platforms, which has a well-established ad ecosystem generating about $500 million daily [5][6] - The integration of AI-powered ad tools is expected to enhance ad targeting and content, potentially improving ROI for marketers [7] Group 2: Advanced Micro Devices (AMD) - AMD's stock has risen approximately 65% since an intra-day low of $76.48 on April 8, indicating strong investor interest [8][9] - The company plans to release its MI400 GPU in 2026, which is expected to offer double the compute power and significantly improve its competitive position against Nvidia [10][11] - In Q1 2025, AMD's data center and client segments saw revenue growth of 57% and 68%, respectively, contributing to an overall annual revenue growth of 36% [12] - AMD's price-to-sales ratio of 7.5 is significantly lower than Nvidia's 24, making it attractive to value-oriented investors [13][14] Group 3: Meta Platforms - Meta Platforms has shown strong performance in digital advertising, generating approximately $160.6 billion of its $164.5 billion total revenue from ads in 2022 [16][17] - The company is set to monetize WhatsApp by placing ads in statuses and channel pages, which could create a new revenue stream [18] - Analysts project Meta's earnings to grow at an average annual rate of 18% over the next three to five years, with WhatsApp's ad revenue potentially exceeding these estimates [19][20]

Core Viewpoint - Rosen Law Firm has filed a class action lawsuit on behalf of purchasers of Reddit, Inc. securities during the specified Class Period, indicating potential legal issues surrounding the company's disclosures and performance [1][5]. Group 1: Lawsuit Details - The class action lawsuit pertains to securities purchased between October 29, 2024, and May 20, 2025, and aims to address misleading statements made by Reddit's management regarding user engagement and advertising revenue [1][5]. - Allegations include that changes in Google Search's algorithm led to a significant drop in traffic to Reddit, which was not disclosed to investors, resulting in damages when the truth was revealed [5]. Group 2: Investor Participation - Investors who purchased Reddit securities during the Class Period may be entitled to compensation without upfront costs through a contingency fee arrangement [2]. - Interested parties can join the class action by submitting a form or contacting the law firm directly, with a deadline for lead plaintiff applications set for August 18, 2025 [3][6]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including over $438 million for investors in 2019 [4]. - The firm has been recognized for its leadership in the field, being ranked No. 1 for securities class action settlements in 2017 and consistently in the top 4 since 2013 [4].

Company Performance - Reddit Inc. (RDDT) experienced a decline of 1.42% in its latest trading session, closing at $139.15, which was a smaller drop compared to the S&P 500's loss of 0.22% [1] - Over the past month, Reddit's shares have surged by 43.57%, significantly outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Earnings Expectations - The upcoming earnings report for Reddit is anticipated to show an EPS of $0.19, reflecting a substantial increase of 416.67% from the same quarter last year [2] - Revenue is projected to reach $426.3 million, indicating a growth of 51.61% compared to the corresponding quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $1.21 per share, representing a growth of 136.34% from the prior year [3] - Revenue for the fiscal year is expected to be $1.85 billion, which marks a 42.01% increase from the previous year [3] Analyst Estimates and Market Sentiment - Changes in analyst estimates for Reddit are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently places Reddit at a rank of 3 (Hold) [6] Valuation Metrics - Reddit Inc. is trading at a Forward P/E ratio of 117.01, which is significantly higher than the industry average Forward P/E of 27.94 [7] - The company has a PEG ratio of 3.62, compared to the average PEG ratio of 2.11 for the Internet - Software industry [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 52, placing it in the top 22% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. for misleading statements and failure to disclose critical information affecting its securities during the specified Class Period from October 29, 2024, to May 20, 2025 [1][5]. Group 1: Lawsuit Details - The lawsuit claims that Reddit's management made false statements regarding user engagement and advertising revenues, particularly in relation to changes in Google Search's algorithm that negatively impacted traffic to Reddit [5]. - Specific allegations include that the defendants were aware that users were finding answers directly through Google Search, leading to a decline in traffic to Reddit, which was not disclosed to investors [5]. - The lawsuit asserts that when the true information became public, investors suffered damages due to the misleading outlook provided by Reddit's management [5]. Group 2: Participation Information - Investors who purchased Reddit securities during the Class Period may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [2]. - Interested parties can join the class action by submitting a form or contacting the Rosen Law Firm for more information [3][6]. - A lead plaintiff must be appointed by August 12, 2025, to represent the interests of the class members in the litigation [1][3]. Group 3: Rosen Law Firm Credentials - The Rosen Law Firm has a strong track record in securities class actions, having achieved significant settlements, including the largest securities class action settlement against a Chinese company at the time [4]. - The firm has consistently ranked highly in terms of the number of securities class action settlements and has recovered hundreds of millions of dollars for investors [4]. - In 2019, the firm secured over $438 million for investors, showcasing its capability and experience in handling such cases [4].

Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. for alleged violations of federal securities laws during the class period from October 29, 2024, to May 20, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Reddit's executives made false or misleading statements regarding the impact of Google Search's algorithm changes on user traffic to Reddit [3]. - It is alleged that these changes led to a significant reduction in traffic to Reddit, as users were able to find answers directly on Google Search without visiting Reddit [3]. - The complaint asserts that the defendants were aware of this trend but failed to disclose it, leading to an inaccurate outlook on user rates and advertising revenues [3]. Group 2: Class Action Participation - Investors who purchased Reddit securities during the specified class period are encouraged to join the lawsuit, with a deadline of August 18, 2025, to request lead plaintiff status [4]. - The law firm representing the class action operates on a contingency fee basis, meaning they will only collect fees if the case is successful [5]. Group 3: Law Firm Background - Bronstein, Gewirtz & Grossman, LLC is a nationally recognized law firm specializing in securities fraud class actions and has recovered hundreds of millions of dollars for investors [6].

Core Viewpoint - A lawsuit has been filed against Reddit, Inc. and its senior executives for potential violations of federal securities laws, specifically related to misrepresentations about user growth impacted by Google's AI technology [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Northern District of California, titled Tamraz, Jr. v. Reddit, Inc., et al., No. 25-cv-05144 [2]. - Investors have until August 18, 2025, to request to lead the case [2]. Group 2: Allegations Against Reddit - The complaint alleges that Reddit downplayed the negative impact of Google's AI on its user growth, which has been significant as users can find answers directly through Google without visiting Reddit [3][4]. - The lawsuit claims violations under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors who purchased Reddit securities [2]. Group 3: Stock Performance - On May 1, 2025, Reddit reported a slowdown in daily active user growth, leading to a stock price decline of $4.96, or over 4%, from $118.79 to $113.83 per share [5]. - Following an analyst downgrade on May 21, 2025, due to concerns over Google's AI capabilities, Reddit's stock fell by $9.79, or over 9%, from $105.64 to $95.85 per share [6].

Core Insights - Reddit's stock experienced a 19.4% increase for the week, attributed to the launch of new AI-powered advertising tools and positive analyst commentary [1][5] Advertising Tools Launch - At the Cannes Lions festival, Reddit introduced Reddit Community Intelligence, which analyzes over 22 million posts to provide insights for advertisers [3] - The company launched two new products: Reddit Insights, an AI-powered social listening tool for marketers, and Conversation Summary Add-ons, which enhance ad placement by integrating positive user content [3][4] Revenue and Market Position - Advertising remains Reddit's primary revenue source, although the company has faced challenges in monetizing its platform compared to larger social media competitors [4] - The recent stock increase was also influenced by B. Riley's commentary on Meta's $14.3 billion investment in Scale AI, suggesting a positive outlook for the value of content on Reddit's platform [5] Future Outlook - The introduction of AI advertising tools is seen as a crucial step for Reddit to sustain its growth in user engagement and advertising revenue, which could further elevate the stock's performance [6]

Core Viewpoint - A securities class action lawsuit has been filed against Reddit, Inc. for failing to disclose significant changes in Google Search's algorithm that adversely affected user traffic and advertising revenues during the class period from October 29, 2024, to May 20, 2025 [1][2]. Group 1: Allegations of the Complaint - The complaint alleges that Reddit's management did not disclose that changes in Google Search's algorithm, including new AI features, were causing users to stop their queries on Google Search, leading to reduced traffic to Reddit [2]. - It is claimed that the management was aware that the increase in the search term "Reddit" was due to users finding answers directly on Google Search, rather than intending to visit Reddit [2]. - The complaint states that the zero-click search phenomenon was significantly reducing traffic to Reddit, which the company could not overcome in the short term [2]. - As a result, the complaint alleges that the company's public statements regarding user rates and advertising revenues were materially false and misleading [2]. Group 2: Analyst Downgrades and Stock Price Impact - On May 19, 2025, Wells Fargo analysts downgraded Reddit's stock, lowering the price target from $168 to $115 per share, citing that new AI features in Google Search would likely cause permanent disruptions to user traffic [3]. - Following the Wells Fargo downgrade, Reddit's stock price fell from $113.23 on May 16, 2025, to $107.99 on May 19, 2025, representing a decline of approximately 4.2% [4]. - On May 21, 2025, Baird analysts also downgraded Reddit's stock, reducing the price target from $140 to $120 per share, echoing concerns about the impact of Google Search's new developments on Reddit's traffic [5]. - After the Baird downgrade, Reddit's stock price dropped from $105.64 on May 20, 2025, to $95.85 on May 21, 2025, a decline of about 9.3% [5].

Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. due to alleged misleading statements regarding user traffic and advertising revenue, particularly in light of changes in Google Search's algorithm and AI features [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of individuals and entities that purchased Reddit securities between October 29, 2024, and May 20, 2025, with a deadline of August 18, 2025, for lead plaintiff applications [1]. - The complaint claims that Reddit's user traffic was significantly impacted by changes in Google Search, which began implementing new AI capabilities that altered search results [2]. Group 2: Allegations Against Reddit - Defendants are accused of failing to disclose that changes in Google Search's algorithm were causing users to stop their queries on Reddit, leading to a decline in traffic [3]. - It is alleged that the increase in searches for "Reddit" was due to users finding answers directly on Google, rather than intending to visit Reddit, resulting in a "zero-click search" phenomenon that adversely affected Reddit's traffic [3]. Group 3: Financial Impact - On May 1, 2025, Reddit reported three consecutive quarters of deceleration in daily active user growth, causing its stock price to drop by $4.96, or 4.2%, from $118.79 to $113.83 per share [4]. - Following a downgrade by Wells Fargo on May 19, 2025, which cited permanent disruptions from Google Search's new AI features, Reddit's stock fell by $5.24, or 4.6%, from $113.23 to $107.99 per share [5]. - On May 21, 2025, Baird analysts further downgraded Reddit's stock, leading to a decline of $9.79, or 9.3%, from $105.64 to $95.85 per share [6][7].

Group 1 - A class action has been filed against Reddit, Inc. on behalf of investors who purchased securities between October 29, 2024, and May 20, 2025 [1] - The allegations include that Reddit misled investors about reduced user traffic due to changes in Google Search's algorithm and features, which led to a significant decline in traffic to the Reddit website [2] - The complaint states that the defendants were aware that increased search queries for "Reddit" were due to users finding answers directly on Google, rather than intending to visit Reddit, which contributed to the misleading public statements [2] Group 2 - Shareholders may be eligible to participate in the class action and can contact Robbins LLP for more information on serving as lead plaintiff [3] - The representation in the class action is on a contingency fee basis, meaning shareholders will not incur fees or expenses [4] - Robbins LLP has been dedicated to helping shareholders recover losses and improve corporate governance since 2002 [4]