NEW YORK, July 21, 2025 /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Reddit, Inc. (NYSE: RDDT). Shareholders who purchased shares of RDDT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery. CONTACT US HERE: https://securitiesclasslaw.com/securities/reddit-inc-loss-submission-form/?id=157179&from=4 The Gross Law Firm 15 West 38th Street, 1 ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased Reddit, Inc. securities during the specified class period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - The class period for the lawsuit is from October 29, 2024, to May 20, 2025, and the lead plaintiff deadline is August 18, 2025 [1]. - Investors can join the class action without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must act by the lead plaintiff deadline to represent other class members [2]. Group 2: Law Firm 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 [3]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013, recovering hundreds of millions for investors [3]. - In 2019, the firm secured over $438 million for investors, and its founding partner was recognized as a Titan of Plaintiffs' Bar by Law360 in 2020 [3]. Group 3: Case Allegations - The lawsuit alleges that during the class period, defendants made false statements and failed to disclose significant changes in Google Search's algorithm that negatively impacted Reddit's traffic [4]. - It is claimed that these algorithm changes led to a zero-click search reality, where users found answers directly on Google without visiting Reddit, thus reducing traffic [4]. - The lawsuit asserts that defendants lacked a reasonable basis for their outlook on user rates and advertising revenues due to these undisclosed issues [4].

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 be appointed 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 - Following a report on May 1, 2025, indicating a slowdown in daily active user growth, Reddit's stock price fell by $4.96, or over 4%, from $118.79 to $113.83 per share [5]. - On May 21, 2025, an analyst from Baird cut the stock price target due to concerns over Google's AI, leading to a further decline of $9.79, or over 9%, from $105.64 to $95.85 per share [6].

Group 1: Reddit - Reddit has shown strong revenue growth post-IPO, with Q1 ad revenue increasing by 61% to $359 million and daily active unique users rising 31% year-over-year to 108 million [3][4] - The company is introducing new AI-powered ad tools to enhance advertising demand, providing marketers with real-time insights into discussions on its platform [4] - Reddit's AI features, such as Reddit Answers, have gained traction, reaching 1 million weekly users in Q1, and the company is monetizing its valuable data by licensing it to AI firms [5] - Despite a 50% rebound from recent lows, Reddit's stock is still 36% below its all-time high, with analysts projecting a 51% year-over-year revenue growth for Q2 [6][7] Group 2: Unity Software - Unity is a leading game engine provider, experiencing significant growth with over 20% quarterly revenue growth until recently, but its stock has fallen 86% from previous highs due to high valuation and declining revenue [9][10] - The company is undergoing a "portfolio reset," which led to a 6% year-over-year revenue decline last quarter, but management's focus on high-growth and high-margin opportunities may unlock Unity's potential [11] - Unity has migrated its advertising business to the AI-powered Unity Vector platform, which is expected to enhance advertising results and drive long-term growth in its Grow Solutions segment [12] - The Create Solutions segment saw an 8% year-over-year revenue decline, but upcoming updates to Unity 6, including AI features, could stimulate demand for its software [13][14] - Analysts expect Unity's revenue to decline 2% in 2025 before growing 9% to $1.9 billion in 2026, with adjusted earnings per share projected to reach $2.34 by 2029 [15] - The stock is currently trading at 13 times 2029 earnings estimates, indicating potential for significant price appreciation [16]

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, captioned 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 - Following the announcement of a slowdown in daily active user growth on May 1, 2025, Reddit's stock price fell by $4.96, or over 4%, from $118.79 to $113.83 per share [5]. - On May 21, 2025, after an analyst cut the stock price target due to concerns over Google's AI, Reddit's stock dropped by $9.79, or over 9%, from $105.64 to $95.85 per share [6].

Core Viewpoint - A class action securities lawsuit has been filed against Reddit, Inc. alleging securities fraud that negatively impacted investors between October 29, 2024, and May 20, 2025 [1][2]. Group 1: Lawsuit Details - The complaint claims that the defendants made false statements regarding the impact of changes in Google Search's algorithm, which led to a significant reduction in traffic to Reddit [2]. - It is alleged that the defendants were aware that users were finding answers directly on Google Search, leading to a decrease in visits to Reddit, contrary to their public statements about user engagement and advertising revenue [2]. - The lawsuit asserts that the defendants lacked a reasonable basis for their outlook on user rates and advertising revenues, rendering their public statements materially false and misleading [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 18, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require serving as lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4]. - The firm has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - A class action securities lawsuit has been filed against Reddit, Inc. alleging securities fraud that negatively impacted investors between October 29, 2024, and May 20, 2025 [1][2]. Group 1: Lawsuit Details - The complaint claims that the defendants made false statements regarding the impact of changes in Google Search's algorithm, which led to a significant reduction in traffic to Reddit [2]. - It is alleged that the defendants were aware that users were finding answers directly on Google Search, leading to a decrease in visits to Reddit, contrary to their public statements about user engagement and advertising revenue [2]. - The lawsuit asserts that the defendants lacked a reasonable basis for their outlook on user rates and advertising revenues, rendering their public statements materially false and misleading [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 18, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require serving as lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, indicating no financial obligation to participate in the lawsuit [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a strong track record in securities litigation, having secured hundreds of millions of dollars for shareholders over the past 20 years [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years, highlighting its expertise in complex securities litigation [4].

Core Viewpoint - Reddit Inc. is currently experiencing a mixed performance in the stock market, with a recent return of +2.2% over the past month, lagging behind the S&P 500's +4.2% and the Internet - Software industry's +1.1% [1] Earnings Estimate Revisions - The consensus earnings estimate for Reddit Inc. is $0.19 per share for the current quarter, reflecting a year-over-year increase of +416.7% [4] - The consensus estimate for the current fiscal year stands at $1.21, indicating a year-over-year change of +136.3%, which has remained unchanged over the last 30 days [4] - For the next fiscal year, the consensus earnings estimate is $2.17, representing an increase of +80% from the previous year [5] Revenue Growth Forecast - The consensus sales estimate for Reddit Inc. is $426.39 million for the current quarter, showing a year-over-year growth of +51.6% [10] - The revenue estimates for the current and next fiscal years are $1.85 billion and $2.38 billion, indicating changes of +42.1% and +28.8%, respectively [10] Last Reported Results and Surprise History - In the last reported quarter, Reddit Inc. achieved revenues of $392.36 million, a year-over-year increase of +61.5%, and an EPS of $0.13 compared to $0.29 a year ago [11] - The company exceeded the Zacks Consensus Estimate for revenues by +5.45% and for EPS by +550% [11] - Reddit Inc. has consistently beaten consensus EPS and revenue estimates in the trailing four quarters [12] Valuation - Reddit Inc. is currently rated F in the Zacks Value Style Score, indicating that it is trading at a premium compared to its peers [16]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit due to alleged misleading statements and omissions related to user traffic and advertising revenues during a specified class period [1][2]. Allegations - The complaint alleges that during the class period from October 29, 2024, to May 20, 2025, Reddit's management made materially false and misleading statements regarding user engagement and advertising revenue [1]. - Specific allegations include that changes in Google Search's algorithm, including features like AI Overview, led to a significant drop in user queries directed to Reddit [1]. - It is claimed that the increase in searches for "Reddit" was due to users finding answers directly on Google, rather than intending to visit Reddit, which contributed to a decline in traffic [1]. - The lawsuit asserts that the company was unable to overcome this decline in traffic in the short term and lacked a reasonable basis for its outlook on user rates and advertising revenues [1]. Next Steps for Shareholders - Shareholders who purchased shares of RDDT during the class period are encouraged to register for the class action by August 18, 2025, to potentially be appointed as lead plaintiffs [2]. - Registered shareholders will receive updates through a portfolio monitoring software throughout the lifecycle of the case [2]. About the Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered losses due to deceit and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that artificially inflated stock prices [3].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit due to alleged misleading statements and failure to disclose material information that negatively impacted the company's stock performance [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from October 29, 2024, to May 20, 2025 [3]. - Allegations include that Reddit's management failed to disclose significant changes in Google Search's algorithm that led to decreased traffic to Reddit, which was not previously experienced [3]. - It is claimed that the increase in search queries for "Reddit" was misleading, as users were finding answers directly on Google without visiting Reddit [3]. - The lawsuit asserts that these factors resulted in a lack of reasonable basis for the company's outlook on user rates and advertising revenues, rendering public statements materially false and misleading [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by August 18, 2025, to participate in potential recovery [4]. - Upon registration, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [4]. Law Firm's Commitment - The Gross Law Firm emphasizes its mission to protect investors' rights against deceit and fraud, ensuring companies adhere to responsible business practices [5].