RDDT INVESTOR NEWS: Reddit, Inc. is being Investigated for Securities Fraud

Core Viewpoint - Reddit, Inc. is under investigation for potential violations of federal securities laws, primarily related to misleading statements about the impact of Google's AI on its user growth [1][2]. Company Overview - Reddit operates a social news aggregation and forum platform, receiving significant user traffic from Google Search [2]. - The company previously assured investors that Google's AI did not materially affect its user growth [2]. Impact of Google's AI - Contrary to Reddit's assurances, Google's AI has negatively impacted its user growth by reducing the necessity for users to visit Reddit for answers, as these answers now appear directly in Google's search results [3]. Stock Performance - Following a downgrade by Wall Street analyst Baird on May 21, 2025, due to concerns over Google's AI capabilities, Reddit's stock price fell by $9.79, or over 9%, from $105.64 to $95.85 per share [4].