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 reportedly hindered Reddit's user growth, contrary to Reddit's assurances to investors that it would not have a material 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].
RDDT INVESTIGATION NOTICE: Reddit, Inc. is being Investigated for Securities Fraud – Contact BFA Law if You Suffered Losses (NYSE:RDDT)