A securities class action has been filed against Reddit, Inc. (RDDT) on behalf of all investors who purchased or otherwise acquired Reddit securities between October 29, 2024 through May 20, 2025. This case has been filed in the USDC – NDCA.
On May 21, 2025, Wall Street analyst Baird cut its Reddit stock price target over concerns that Google’s expanded use of AI capabilities in its search results are stifling Reddit’s user growth. Despite a significant portion of Reddit’s traffic coming from individuals performing Google searches, the Company claimed that Google’s shift to AI in search results would not have a material impact on its user growth. Analyst Baird cut its price target for the Company’s shares on May 21, 2025, citing its concerns on the very issue of Google’s AI answers causing users to stop visiting Reddit. Based on this news, shares of Reddit fell by over 9%.