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].

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]. 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 [3][4]. Legal Proceedings - The lawsuit is pending in the U.S. District Court for the Northern District of California, with claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 [2]. - Investors have until August 18, 2025, to request to lead the case [2]. 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 impact, Reddit's stock fell by $9.79, or over 9%, from $105.64 to $95.85 per share [6].

Core Insights - Reddit (RDDT) operates a community-driven social media platform with over 100,000 active subreddits, generating more than 90% of its revenue from digital advertising, reporting first-quarter revenues of $392 million, reflecting a 61% year-over-year growth [1] - The company faces significant competition in the digital advertising space, primarily from established players like Meta Platforms and Alphabet, which have advanced advertising infrastructures and extensive advertiser relationships [5][7] - Reddit shares have declined 10.3% year-to-date due to rising competitive pressures and a challenging macroeconomic environment, underperforming compared to the broader Zacks Computer & Technology sector and the Zacks Internet Software industry [2] Financial Performance - For 2025, the Zacks Consensus Estimate for Reddit's revenues is $1.85 billion, indicating a year-over-year growth of 42.07%, with earnings estimated at $1.21 per share, an improvement from a loss of $3.33 per share in 2024 [12] - Daily Active and Weekly Active Unique users increased by 31% year-over-year, reaching 108.1 million and 401 million, respectively, in the reported quarter [15] Competitive Landscape - Reddit's advertising technology is less sophisticated than that of Meta Platforms and Alphabet, with weaker targeting and measurement tools, which may hinder its ability to compete for advertising budgets [8][9] - Reddit trades at a forward price-to-sales (P/S) ratio of 12.67X, significantly higher than the industry average of 5.71X and competitors like Meta and Alphabet, which trade at P/S ratios of 9.1 and 6.36, respectively [9] Product Development and User Engagement - Reddit has been expanding its platform with tools like Reddit Answers, which reached one million weekly users, and Reddit Community Intelligence, aimed at generating marketing insights [13][14] - The company is enhancing user engagement through AI-powered features, which are expected to improve the value of its advertising inventory [8][14] Conclusion - While Reddit's growing product suite and user engagement show long-term potential, the current premium valuations, intense competition, and macroeconomic uncertainties suggest limited near-term gains [17][18] - The stock currently carries a Zacks Rank 4 (Sell), indicating that investors should avoid the stock at current levels [19]

Core Viewpoint - A class action securities lawsuit has been filed against Reddit, Inc. due to alleged securities fraud affecting investors between October 29, 2024, and May 20, 2025 [1][2]. Group 1: Lawsuit Details - The complaint alleges 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 claimed that the defendants were aware that the increase in searches for "Reddit" was due to users finding answers directly on Google, rather than intending to visit Reddit [2]. - The lawsuit asserts that the defendants lacked a reasonable basis for their outlook on user rates and advertising revenues, resulting in materially false and misleading public statements [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until August 18, 2025, to request to be appointed as lead plaintiff, although participation in any recovery does not require serving as a 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 has a history of securing hundreds of millions of dollars for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Insights - Meta Platforms and Reddit are significant players in the social media sector, with Meta serving over 3.4 billion daily users and Reddit having 108.1 million daily users, both primarily generating revenue from advertising [2] - The global social media advertising market is projected to grow from $228.18 billion in 2024 to $406.64 billion in 2029, reflecting a CAGR of 12.25% [3] Company Performance - Reddit is experiencing strong user engagement growth, with expectations of Q2 2025 revenues between $410 million and $430 million, indicating a year-over-year growth of 46-53% [6][9] - Meta Platforms has seen a 7% increase in time spent on Facebook and a 6% increase on Instagram over the past six months due to AI integration [8] AI Integration - Both companies are investing heavily in AI to enhance advertising capabilities and user experiences, with Meta AI reaching nearly one billion monthly users [3][8] - Reddit's AI-powered features, such as Reddit Answers, are enhancing content discovery and personalization, with over one million weekly users engaging with this feature [5][6] Advertising Strategies - Meta's Ads Manager now integrates across WhatsApp, Facebook, and Instagram, optimizing advertising spend with Advantage AI [9][10] - Reddit is improving its advertising technology and tools for advertisers, but it still lags behind Meta and Google in this area [7][9] Financial Metrics - Reddit's stock trades at a forward Price/Sales ratio of 12.62X, while Meta's is at 9.06X, despite Meta's broader reach and diversified advertising tools [9][16] - The Zacks Consensus Estimate for Reddit's 2025 earnings is $1.21 per share, while Meta's is $25.35 per share, indicating a 6.24% increase over 2024 [18] Competitive Positioning - Meta Platforms is viewed as having better growth potential due to its diverse business model, proven AI implementation, and multiple revenue sources [19] - Reddit's unique community-based model presents challenges for rapid growth and revenue diversification [7][19]

Core Insights - Reddit (RDDT) is a community-driven platform focused on real-time discussions across over 100,000 active communities, with advertising as its primary revenue source [1] - The platform's growth is dependent on expanding and retaining a highly engaged user base, which is attractive to marketers seeking high-conversion platforms [1] User Engagement and Revenue - Reddit's Daily Active Uniques (DAUq) and Weekly Active Uniques (WAUq) increased by 31% year over year in Q1, reaching 108.1 million and 401 million, respectively [2] - Average revenue per user (ARPU) rose 23% year over year to $3.63 in the reported quarter, with a Zacks Consensus estimate of $3.85 for Q2 [2][9] - The core ad business grew 61% year over year to $358.6 million in Q1, with a Zacks Consensus estimate of $394.2 million for Q2 [4] Platform Enhancements - A series of platform enhancements, including AI-powered feed ranking and Community Intelligence tools, are expected to improve user engagement and ad targeting [3] - Features like Reddit Answers and guided contribution flows are designed to promote active participation and retention [3] Competitive Landscape - Reddit faces significant competition from Meta Platforms and Nextdoor in scaling ad revenues through user engagement [5] - Meta Platforms leverages its AI-powered ad delivery and extensive user base to drive high ARPU and retention [5] - Nextdoor is enhancing its localized performance ad model, which aligns with Reddit's strategy of converting engagement into monetizable intent [6] Stock Performance and Valuation - Reddit shares have declined 10.9% year to date, contrasting with increases in the broader Zacks Computer & Technology sector and the Internet Software industry [7] - Reddit's stock is trading at a premium, with a forward 12-month Price/Sales ratio of 12.62X compared to the industry's 5.72X [11] - The Zacks Consensus Estimate for Reddit's 2025 earnings is $1.21 per share, an improvement from a loss of $3.33 per share in 2024 [14]

Core Viewpoint - Class action lawsuits have been filed on behalf of shareholders of several publicly-traded companies, with specific allegations of misleading statements and undisclosed risks during designated class periods [1][2][3][4][5]. Group 1: Rocket Pharmaceuticals, Inc. (NASDAQ: RCKT) - Class period is from February 27, 2025, to May 26, 2025, with a lead plaintiff deadline of August 11, 2025 [2]. - Allegations include that Rocket was aware of serious adverse events (SAEs), including participant deaths, and failed to disclose this risk [2]. - The company amended trial protocols without informing shareholders, leading to misleading positive statements about its business and prospects [2]. Group 2: 3D Systems Corporation (NYSE: DDD) - Class period is from August 13, 2024, to May 12, 2025, with a lead plaintiff deadline of August 12, 2025 [3]. - Allegations state that 3D Systems understated the impact of reduced customer spending and overstated its resilience in tough industry conditions [3]. - The updated milestone criteria negatively impacted the company's Regenerative Medicine Program revenue, resulting in misleading statements about its business outlook [3]. Group 3: Tempus AI, Inc. (NASDAQ: TEM) - Class period is from August 6, 2024, to May 27, 2025, with a lead plaintiff deadline of August 12, 2025 [4]. - Allegations include inflation of contract values and risks associated with the joint venture with SoftBank, which appeared to involve "round-tripping" capital [4]. - Concerns were raised about the business model of Tempus-acquired Ambry, which was based on aggressive billing practices, and reduced financial commitments from AstraZeneca [4]. Group 4: Reddit, Inc. (NYSE: RDDT) - Class period is from October 29, 2024, to May 20, 2025, with a lead plaintiff deadline of August 18, 2025 [5]. - Allegations indicate that changes in Google Search algorithms led to decreased traffic to Reddit, which was not disclosed to investors [5]. - The company misrepresented its user rates and advertising revenue outlook, failing to acknowledge the impact of zero-click searches on its traffic [5].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Reddit, Inc. regarding a class action lawsuit alleging that the company made materially false and misleading statements during a specified class period, which negatively impacted its stock value [1][2]. Group 1: Allegations Against Reddit, Inc. - The complaint alleges that changes in Google Search's algorithm, including features like AI Overview, led to a decline in user queries on Google Search, which in turn affected traffic to Reddit [1]. - It is claimed that these algorithm changes were significantly different from previous instances of reduced traffic to Reddit's website [1]. - The defendants allegedly knew that the increase in the search term "Reddit" was due to users finding answers directly on Google Search, rather than intending to visit Reddit [1]. - The phenomenon of zero-click searches is said to have dramatically reduced traffic to Reddit, which the company could not overcome in the short term [1]. - As a result, the defendants are accused of lacking a reasonable basis for their outlook on user rates and advertising revenues, leading to materially false and misleading public statements [1]. Group 2: Class Action Details - The class period for the lawsuit is defined as October 29, 2024, to May 20, 2025, with a deadline for shareholders to register as lead plaintiffs set for August 18, 2025 [2]. - Shareholders who register will be enrolled in a portfolio monitoring software to receive updates on the case's status [2]. - Participation in the case incurs no cost or obligation for the shareholders [2]. Group 3: About The Gross Law Firm - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors affected by deceit, fraud, and illegal business practices [3]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions by companies [3].

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 [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].

Group 1: Palantir Technologies - Palantir Technologies has seen a significant stock increase of 69% since April 2, attributed to the recognition of its Artificial Intelligence Platform (AIP) [4][5] - The company reported a 39% year-over-year revenue growth in Q1 2025, with net income rising by 105% to over $214 million [6] - Despite strong financial performance, Palantir's trailing P/E ratio exceeds 600, and the forward P/E ratio is over 230, raising concerns about its valuation [7][8] Group 2: Reddit - Reddit's stock has surged nearly 50% since April 2 and over 300% since its IPO on March 21, 2024 [10] - The platform reported 108 million daily average users, a 31% increase year-over-year, and $392 million in revenue for Q1, up 61% year-over-year [12] - Reddit's content generation positions it as a valuable asset for AI developers, with potential for lucrative licensing deals, including an existing agreement with Alphabet [14][15] Group 3: Netflix - Netflix's stock has risen by over 104,000% since 2022, with a 36% increase since the "Liberation Day" announcement [16][18] - The company has transitioned to a digital platform and invested heavily in original content, leading to improved profit margins [17][18] - Netflix's paid subscriber count grew by over 15% year-over-year in Q4 2024, reaching more than 301 million, with analysts projecting an average earnings growth of almost 22% annually over the next three to five years [20][21]