Core Insights - Reddit's initial public offering (IPO) was set at a share price of $47 on March 21, 2024, marking a significant milestone for the company [1] - The platform has maintained a strong user base with over 108 million daily users across more than 100,000 subreddit communities, showcasing its resilience in the evolving social media landscape [2] - The rise of AI chatbots poses a significant threat to Reddit, as users may prefer quick answers from AI over engaging in discussions on the platform [3][5][6] Company Positioning - CEO Steve Huffman acknowledges the challenges posed by AI but believes they also present opportunities for Reddit to differentiate itself through user-generated content [4] - Huffman emphasizes the importance of human interaction and conversation, suggesting that Reddit's focus will remain on fostering community discussions [5] - Despite the loyalty of Reddit's user base, there is a growing trend of users opting for the convenience of AI for information retrieval, which could impact Reddit's user engagement [5][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 misrepresentation of 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 growth 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 Viewpoint - A class action lawsuit has been filed against Reddit, Inc. concerning allegations of securities fraud and unlawful business practices [2][3]. Financial Performance - On May 1, 2025, Reddit reported its financial results for Q1 2025, marking its third consecutive quarter of declining daily active user growth [3]. - Following the Q1 report, Reddit's stock price fell by $4.96 per share, or 4.18%, closing at $113.83 on May 2, 2025 [3]. Analyst Downgrades - On May 19, 2025, Wells Fargo analysts downgraded Reddit's stock, citing concerns over new AI features implemented by Google Search that could disrupt user traffic, resulting in a stock price drop of $5.24 per share, or 4.63%, to close at $107.99 on May 10, 2025 [4]. - On May 21, 2025, Baird analysts also downgraded Reddit's stock for similar reasons, leading to a further decline of $9.79 per share, or 9.27%, closing at $95.85 on May 21, 2025 [5].

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, which was not communicated to investors [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 this [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, indicating no financial obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky has a history of securing significant settlements for shareholders and is recognized as one of the top securities litigation firms in the United States [4]. - The firm has over 70 employees dedicated to serving clients in complex securities litigation [4].

Core Viewpoint - A class action lawsuit has been filed against Reddit, Inc. for allegedly misleading investors regarding 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 lawsuit claims that Reddit made false statements and failed to disclose material information about the impact of Google's algorithm changes on user traffic [3]. Group 2: Allegations Against Reddit - Key allegations include that changes to Google Search's algorithm, such as the introduction of AI Overview, significantly reduced 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 lawsuit asserts that these factors 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 - Following the release of Q1 2025 financial results on May 1, 2025, which showed a third consecutive quarter of slowing daily active user growth, Reddit's stock price declined [4]. - Analysts from Wells Fargo downgraded Reddit's stock on May 19, 2025, lowering the price target to $115 due to concerns over Google's AI features causing permanent disruption to user traffic [4]. - Baird analysts also downgraded Reddit's stock on May 21, 2025, cutting the price target to $120, citing ongoing U.S. user growth headwinds, which resulted in a stock decline of over 9% [5].

NEW YORK, June 26, 2025 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that a lawsuit has been filed against Reddit, Inc. (NYSE: RDDT) and certain of the Company’s senior executives for potential violations of the federal securities laws. If you invested in Reddit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action. Investors have until August 18, 2025, to ask the Court to ...

Core Viewpoint - A securities class action lawsuit has been filed against Reddit, Inc. for allegedly making false and misleading statements regarding user traffic and advertising revenues during the specified class period [1][2]. Group 1: Allegations Against Reddit - The lawsuit claims that Reddit's management failed to disclose significant changes in Google Search's algorithm that negatively impacted user traffic to Reddit [2]. - It is alleged that the increase in search queries for "Reddit" was due to users finding answers directly on Google, rather than intending to visit Reddit [2]. - The complaint states that these factors led to a dramatic reduction in traffic that Reddit could not mitigate in the short term, undermining the company's outlook on user rates and advertising revenues [2]. Group 2: Legal Process for Investors - Investors who suffered losses during the class period can seek to be appointed as lead plaintiffs by August 18, 2025, or remain absent class members [3]. - The lead plaintiff will represent the interests of all class members and select legal counsel to direct the litigation [3]. Group 3: Firm Background - Kessler Topaz Meltzer & Check, LLP is known for prosecuting class actions and has a reputation for recovering billions for victims of corporate misconduct [4].

With the S&P 500 near YTD highs again despite a noticeable increase in both geopolitical and macroeconomic concerns, I remain generally concerned about how stretched valuation multiples have become, especially in the large-cap growth space. That being said, while I am focusing most ofWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping ...

RDDT Reddit When investors spot an unusual amount of buying for a given stock, this typically creates the sort of curiosity that can lead to some of the most profitable rabbit holes. However, as this information is now readily available to all retail investors, the "smart money" in the market has figured out a way to still shift massive amounts of capital in a much quieter manner. Reddit Today $142.41 +8.27 (+6.17%) 52-Week Range $49.13 ▼ $230.41 P/E Ratio 241.26 Price Target $139.35 Add to Watchlist Throug ...

Key Takeaways Reddit's ad revenues rose 61% YoY in Q1 2025, driven by growth in performance-focused ad campaigns. DPAs and new tools like Meta import and Smartly.io helped scale conversion-led advertising on Reddit. Over 90% of advertisers used Pixel, while CAPI-driven revenue more than tripled from the prior year.Reddit (RDDT) is expanding commerce-focused ad infrastructure as the social networking platform provider shifts from community-led discovery to full-funnel performance marketing. In the first qu ...