RDDT BREAKING NEWS: BFA Law is Investigating Reddit, Inc. for Securities Fraud; Contact the Firm about how to Potentially Recover Investment Losses

1. Bleichmar Fonti & Auld investigate Reddit for potential securities law violations. 2. Google's AI negatively impacted Reddit's user growth, contrary to investor claims. 3. Reddit's stock fell 9% after Baird cut its price target. 4. Investors may have legal options related to securities fraud. 5. Reddit's stock decline indicates heightened risk for current and potential investors.

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Why Very Bearish?

The investigation into potential securities fraud could erode investor confidence, as seen in past cases like Tesla and their stock price impacts. Similar investigations have historically caused sharp declines in stock prices as uncertainty looms.

How important is it?

The potential for significant drops in RDDT's stock price due to legal concerns warrants high importance. The ongoing legal scrutiny and its implications make it crucial for investors to monitor.

Why Short Term?

The immediate fallout from the investigation and stock price adjustments typically occurs quickly. Previous investigations have resulted in significant and rapid price declines as investor sentiment shifts.

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NEW YORK--(BUSINESS WIRE)--Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Reddit, Inc. (NYSE: RDDT) for potential violations of the federal securities laws.

Leading securities law firm Bleichmar Fonti & Auld LLP announces an investigation into Reddit, Inc. (NYSE: RDDT) for potential violations of the federal securities laws.
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If you invested in Reddit, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action .

Why is Reddit being Investigated?

Reddit owns and operates the eponymous social news aggregation, forum, and social media platform. Reddit receives a significant portion of its user traffic from individuals seeking answers to questions using Google Search. During the relevant period, Reddit assured investors that Google’s use of Artificial Intelligence (“AI”) in Google’s search results did not have a material impact on Reddit’s user growth.

In truth, Google’s use of AI dented Reddit’s user growth by eliminating the need for individuals to visit and click through to Reddit to get answers to their questions. Rather, the answers appeared through Google’s AI search results.

The Stock Declines as the Truth is Revealed

On May 21, 2025, Wall Street analyst Baird cut its Reddit stock price target over concerns that Google’s AI capabilities are stifling Reddit’s user growth. On this news, the price of Reddit stock fell $9.79 per share, or over 9%, from $105.64 per share on May 20, 2025, to $95.85 per share on May 21, 2025.

Click here for more information: https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action .

What Can You Do?

If you invested in Reddit you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis, there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases-investigations/reddit-inc-securities-fraud-class-action

Or contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619

Why Bleichmar Fonti & Auld LLP?

Bleichmar Fonti & Auld LLP is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com .