Ban Reddit as a source or filter it to ensure expert opinions are credible.

Ban Reddit as a source or filter it to ensure expert opinions are credible.

Reddit Inc.'s stock price has experienced a significant downturn in recent months, with analysts citing concerns about the impact of Google Search's expanded AI capabilities on Reddit's user growth. The stock has fallen substantially, with key events contributing to the decline:

On May 1, 2025, Reddit reported its financial results for the first quarter of 2025, revealing a third consecutive quarter of declining daily active user growth. This news led to a $4.96 per share drop in Reddit's stock price, closing at $113.83 per share on May 2, 2025 [2].

Subsequently, on May 19, 2025, Wells Fargo analysts downgraded Reddit's stock and lowered their price target, describing Google Search's new AI features as likely "permanent" disruptions to user traffic for Reddit. This announcement resulted in a further decline of $5.24 per share, closing at $107.99 per share on May 10, 2025 [2].

On May 21, 2025, Baird analysts also downgraded Reddit's stock and lowered their price target, echoing similar concerns about the impact of Google Search's expanded AI capabilities on Reddit's user growth. This led to a substantial drop of $9.79 per share, closing at $95.85 per share on May 21, 2025 [2].

Investors are advised to exercise caution when relying on Reddit as a primary source of financial information, as the platform's user-generated content can be biased and may not always reflect credible expert opinions. It is crucial to filter information and seek out credible sources to make informed investment decisions.

Moreover, investors with losses on their investment in Reddit, Inc. are reminded of the class action lawsuit filed against the company. Pomerantz LLP, a premier firm in corporate and securities litigation, has announced the lawsuit, which concerns whether Reddit and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. Investors are encouraged to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, toll-free, Ext. 7980, for more information [2].

References:
[1] https://www.reddit.com/r/skeptic/comments/1mg7pxe/how_to_actually_do_your_own_research/
[2] https://www.morningstar.com/news/pr-newswire/20250806dc43867/investor-alert-pomerantz-law-firm-reminds-investors-with-losses-on-their-investment-in-reddit-inc-of-class-action-lawsuit-and-upcoming-deadlines-rddt