Reddit, Inc. (NYSE: RDDT)

This lawsuit is for anyone who acquired securities in Reddit, Inc. (NYSE: RDDT) from October 29, 2024 through May 20, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by failing to timely inform investors of the degree to which the Company relied on Google to drive the Company’s growth.

On May 1, 2025, after market hours, Reddit released its first quarter 2025 financial results, marking a third consecutive quarter with slowdown in daily active user growth. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume. Then, on May 19, 2025, Wells Fargo analysts downgraded Reddit’s stock, stating that Google’s AI features would likely cause “permanent” disruptions to user traffic for Reddit, and that traffic to Reddit from Google Search would continue to decline and ultimately hurt Reddit’s advertising revenue. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume. Then, on May 21, 2025, Baird analysts downgraded Reddit’s stock, citing similar concerns as Wells Fargo. On this news, the price of the Company’s stock again dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Reddit, Inc. (NYSE: RDDT) from October 29, 2024 through May 20, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.