Core Insights - Reddit shares increased by approximately 5% following the introduction of new AI-powered advertising tools [1] - The new features aim to enhance brand engagement by utilizing discussions on the platform through a system called Reddit Community Intelligence [1] Tool Summaries - The first tool, Reddit Insights, provides real-time insights to marketers, enabling them to identify trends and effectively launch campaigns [1] - The second tool, Conversation Summary Add-ons, allows brands to display "positive" user-generated content alongside their advertisements [1] Marketing Strategy - The company emphasizes that these tools represent a new era of community marketing, allowing brands to connect authentically with engaged communities globally [2]

Core Insights - Reddit (RDDT) and Nextdoor (KIND) are community-driven social platforms that provide investors with exposure to both global and localized engagement [1] - The social networking market is projected to grow by $312.3 billion from 2024 to 2029, with a CAGR of 21.6%, driven by increased Internet penetration and demand for targeted advertising [2] Reddit (RDDT) Overview - RDDT experienced a 61% year-over-year revenue increase in Q1 2025, reaching $392.4 million, primarily due to higher ad impressions and investment from performance advertisers [3][10] - Daily Active Uniques rose 31% year over year to 108.1 million, while mobile app usage grew by 45% [4][10] - Reddit is enhancing its platform with AI-led features, such as Reddit Answers, which has one million weekly users, and is expanding into the U.K. and Australia [5][6] - The introduction of Reddit Pro has improved advertiser tools, facilitating better community engagement and visibility [6] Nextdoor (KIND) Overview - KIND's revenue grew by 2% year over year to $54 million in Q1 2025, although it fell short of consensus estimates by 1.3% [7][10] - Weekly Active Users increased by 6% year over year to 46.1 million, with platform engagement metrics also showing growth [8][10] - Nextdoor is advancing its product portfolio through the NEXT redesign initiative, which aims to enhance content discovery and usability [9] - AI-powered tools have been introduced to improve user engagement and support monetization efforts [11] Market Performance and Valuation - Year-to-date, RDDT and KIND shares have declined by 27.7% and 35.8%, respectively, due to a challenging macroeconomic environment [12] - Both companies are currently considered overvalued, with RDDT trading at a forward Price/Sales ratio of 10.46X compared to KIND's 2.28X [15] - The Zacks Consensus Estimate for RDDT's 2025 earnings is $1.21 per share, indicating a 136.34% year-over-year increase, while KIND's 2025 loss is estimated at 20 cents per share, an improvement from the previous year's loss [18] Conclusion - Reddit is positioned favorably with strong revenue growth, an expanding product portfolio, and increasing adoption of AI tools, making it a more attractive investment compared to Nextdoor, which is still in the early stages of scaling its platform [20][21]

NEW YORK, June 17, 2025 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of  Reddit, Inc. ("Reddit" or the "Company") (NYSE: RDDT). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.The investigation concerns whether Reddit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. [Click here for information about joining the class action]On May 21, 2025, Wall Street anal ...

Core Insights - The current market cycle is shifting focus towards technology companies that provide stability and growth potential, particularly in volatile environments [1][2] - Companies like Reddit, Spotify, and Roku are highlighted for their subscription-based revenue models, which are attractive to investors during uncertain times [3] Group 1: Reddit - Reddit's stock is currently trading at 51% of its 52-week highs, indicating a significant discount [4] - The 12-month stock price forecast for Reddit is $139.35, representing a 10.30% upside potential from the current price of $126.33 [5] - Analysts note that Reddit's business model, particularly its focus on artificial intelligence and large language models, could drive future growth [5][6] Group 2: Spotify - Spotify's stock forecast indicates a 12-month price target of $614.59, which reflects a -14.12% downside from the current price of $715.64 [10] - The company has managed to maintain high stock prices despite broader market declines, attributed to its unique social play and subscription model [10][11] - UBS Asset Management increased its holdings in Spotify by 39.9%, signaling confidence in the company's future prospects [12] Group 3: Roku - Roku's stock trades at a price-to-book (P/B) ratio of 4.4x, significantly higher than the average of 1.5x for its peers, indicating a premium valuation [13] - The 12-month stock price forecast for Roku is $88.37, suggesting a 7.54% upside from the current price of $82.17 [14] - Analysts believe Roku's subscription revenue model and potential for explosive user growth contribute to its strong financial profile [15][16]

Core Viewpoint - Reddit, Inc. is under investigation for potential violations of federal securities laws, primarily related to misleading statements about the impact of Google's AI on its user growth [1][2]. Group 1: Investigation Details - Bleichmar Fonti & Auld LLP is leading the investigation into Reddit for possible securities fraud [1]. - The investigation stems from Reddit's assurances to investors that Google's AI did not materially affect its user growth, which has been contradicted by evidence showing a decline in user engagement due to AI-driven search results [2][3]. Group 2: Stock Performance - Following a downgrade by Wall Street analyst Baird on May 21, 2025, Reddit's stock price fell by $9.79, or over 9%, from $105.64 to $95.85 per share [4].

Analyst's Disclosure:I/we have a beneficial long position in the shares of RDDT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any in ...

Core Viewpoint - Reddit, Inc. is under investigation for potential violations of federal securities laws, primarily related to its user growth being negatively impacted by Google's AI search results [1][2][3]. Company Overview - Reddit operates a social news aggregation and forum platform, which has seen a decline in user traffic as Google’s AI reduces the need for users to visit Reddit for answers [2][3]. Impact of Google's AI - Google's implementation of AI in search results has materially affected Reddit's user growth, contrary to Reddit's assurances to investors that it would not have a significant impact [2][3]. Stock Performance - Following a downgrade from Wall Street analyst Baird regarding Reddit's stock price target due to concerns over user growth, Reddit's stock price fell by $9.79, or over 9%, from $105.64 on May 20, 2025, to $95.85 on May 21, 2025 [4].

Core Viewpoint - Reddit, Inc. is under investigation for potential violations of federal securities laws, primarily related to misleading statements about the impact of Google's AI on its user growth [1][2]. Company Overview - Reddit operates a social news aggregation and forum platform, which has seen a decline in user traffic due to Google's AI search results providing answers directly, reducing the need for users to visit Reddit [2][3]. Stock Performance - Following a downgrade by Wall Street analyst Baird on May 21, 2025, Reddit's stock price fell by $9.79, or over 9%, from $105.64 to $95.85 per share, reflecting investor concerns about the company's user growth being stifled by Google's AI capabilities [4].

The latest trading session saw Reddit Inc. (RDDT) ending at $115.03, denoting a -1.76% adjustment from its last day's close. This change lagged the S&P 500's daily loss of 0.27%. The stock of company has risen by 3.77% in the past month, lagging the Computer and Technology sector's gain of 11.99% and the S&P 500's gain of 6.9%.The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 416.67% increase fr ...

LOS ANGELES, June 11, 2025 /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of Reddit, Inc. ("Reddit" or "the Company") (NYSE: RDDT) for violations of the securities laws.The investigation focuses on whether the Company issued false and/or misleading statements and/or failed to disclose information pertinent to investors. Despite a significant portion of Reddit's traffic coming from individuals performing Goo ...