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]

NEW YORK, June 18, 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 t ...

MIAMI, June 18, 2025 (GLOBE NEWSWIRE) -- The following statement is being issued by Shamis & Gentile, P.A: To: All persons or entities who purchased or otherwise acquired Reddit, Inc. (“Reddit” or the “Company”) (NYSE:RDDT) securities between October 29, 2024 and May 20, 2025, inclusive. You are hereby notified that the class action lawsuit Tamraz, Jr. v. Reddit, Inc., et al., Case No. 3:25-cv-05144 has been commenced in the United States District Court for the Northern District of California. For more info ...

Core Insights - Reddit (RDDT) is enhancing its advertising business by leveraging real-time community engagement to provide strategic insights for brands, gaining traction among advertisers seeking authenticity and scale [1][4]. Advertising Business Development - Reddit launched Community Intelligence, a suite that allows marketers to monitor live conversations across subreddits, analyze sentiment, and optimize campaign decisions, transforming the platform into a dynamic planning engine [2]. - In Q1 2025, Reddit's advertising revenue reached $358.6 million, a 61% increase year-over-year, with performance campaigns making up 60% of total ad spend, indicating strong growth among mid- and lower-funnel advertisers [4][10]. User Engagement Metrics - User engagement on Reddit is robust, with Weekly Active Users at 401 million and Daily Active Uniques at 108 million, both reflecting a 31% year-over-year increase, which is a key driver for advertising growth [3][10]. Competitive Landscape - Reddit faces significant competition from Alphabet (GOOGL) and Meta Platforms (META), both enhancing their AI-driven advertising capabilities. Alphabet's Google Ads and YouTube offer large-scale performance marketing, while Meta strengthens its advertising tools across its platforms [6][7]. Valuation and Market Performance - Reddit's stock has declined 18.1% year-to-date, contrasting with a 1.6% return for the broader Zacks Computer & Technology sector and a 13% increase in the Zacks Internet - Software industry [8]. - The forward 12-month Price/Sales ratio for Reddit is 11.8X, significantly higher than the sector average of 6.36X, indicating a premium valuation [12]. Earnings Estimates - The Zacks Consensus Estimate for Q2 2025 earnings is 19 cents per share, an improvement from a loss of 6 cents per share in the same quarter last year. For fiscal 2025, the earnings estimate is $1.21 per share, up from a loss of $3.33 per share in fiscal 2024 [15].

Core Insights - Reddit (RDDT) shares closed at $133.84, which is 41.9% below its 52-week high of $230.41 reached on February 10, 2025, and have dropped 18.1% year to date (YTD) [1][2][8] - The company has faced challenges from macroeconomic conditions, higher tariffs affecting discretionary spending, and increased competition from Snap and Nextdoor [2][4] - Despite these challenges, Reddit's Q1 2025 results showed a revenue increase of 61% year over year to $392.36 million, surpassing estimates [4][5][11] Stock Performance - Reddit shares have rebounded 12.7% since May 1, 2025, outperforming Snap and Nextdoor, which declined 24% and 31.6% YTD, respectively [2][4] - The stock is currently trading at a price-to-sales (P/S) ratio of 11.8X, significantly higher than the industry average of 5.57X and competitors Snap (2.24X) and Nextdoor (2.42X) [6][8] User Engagement and Revenue Growth - Daily and weekly active users increased by 31% year over year, contributing to a 61% growth in advertising revenues to $358.6 million [5][11] - The Zacks Consensus Estimate for Q2 2025 revenues is between $410 million and $430 million, indicating a potential growth of 51.61% year over year [11] Product Development and Partnerships - Reddit is enhancing its advertising platform with AI-powered tools and has launched new features like Dynamic Product Ads and Reddit Community Intelligence [12][14] - Collaborations with major companies like Alphabet and Microsoft are expected to drive innovation and improve measurement tools [15][16] Market Position and Outlook - Reddit's growing product suite and user engagement suggest long-term potential, although the stock is currently trading at a premium [16][18] - The company holds a Zacks Rank 3 (Hold), indicating a cautious approach for investors amid market uncertainties [18]

NEW YORK, June 18, 2025 (GLOBE NEWSWIRE) -- 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 newaction@pomlaw.com 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 ...

ToplineGoogle AI Overview and AI Mode could further slash online media revenue. Will Reddit capitalize on its user-generated content to defy this trend?The Google AI logo appears on a smartphone screen in this illustration photo in Reno, United States, ... More on December 18, 2024. (Photo Illustration by Jaque Silva/NurPhoto via Getty Images)NurPhoto via Getty Images Key FactsAI chatbots are replacing Google search which devastates some online publishers’ traffic. Publishers are cutting staff and are stru ...

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive has bureaus and studios in key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2][3] Group 2 - The company is focused on sectors such as biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4] - Automation and software tools, including generative AI, are utilized, but all content is edited and authored by humans [5]

Regencell Bioscience Holdings Ltd. RGC, a Hong Kong-based biotech startup with no reported revenue, has gained more than 59,000% in 2025. The company, which claims to be developing traditional Chinese herbal treatments for childhood ADHD and autism, saw its market value reach nearly $30 billion, by Monday's close. Following a 38-for-1 stock split announced earlier in June, the stock skyrocketed by over 280% on Monday.Read Next: Sunrun, First Solar Plunge—Solar Stocks Hit Hard By Trump Tax Bill: Latest Regen ...