Law Offices of Howard G. Smith Encourages Reddit, Inc. (RDDT) Investors To Inquire About Securities Fraud Class Action
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Reddit, Inc. ('Reddit' or the 'Company') (NYSE: RDDT) securities between , inclusive (the 'Class Period'). Reddit investors have until August 18, 2025 to file a lead plaintiff motion.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN REDDIT, INC. (RDDT), CONTACT THE LAW OFFICES OF HOWARD G. SMITH TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at howardsmith@howardsmithlaw.com, by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
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, Reddit's stock price fell $4.96, or 4.2%, to close at $113.83 per share on May 2, 2025, thereby injuring investors.
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, Reddit's stock price fell $5.24, or 4.6%, to close at $107.99 per share on May 19, 2025.
Then, on May 21, 2025, Baird analysts downgraded Reddit's stock, citing similar concerns as Wells Fargo. On this news, Reddit's stock price fell $9.79, or 9.3%, to close at $95.85 per share on May 21, 2025, thereby injuring investors further.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) changes in Google Search's algorithm and features like AI Overview were causing users to stop their query on Google Search; (2) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website; (3) Defendants were aware that the increase in the query term 'Reddit' on search engines was because users were getting the sought after answer from Google Search without having to go to Reddit, and not because they intended to visit Reddit; (4) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term; (5) Defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
Contact Us To Participate or Learn More:
If you purchased Reddit securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Law Offices of Howard G. Smith
3070 Bristol Pike, Suite 112
Bensalem, Pennsylvania 19020
Telephone: (215) 638-4847
Email: howardsmith@howardsmithlaw.com
Visit our website at: www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Greenbrier (GBX) Reports Earnings Tomorrow: What To Expect
Rail transportation company Greenbrier (NYSE:GBX) will be announcing earnings results this Tuesday after market hours. Here's what to look for. Greenbrier missed analysts' revenue expectations by 15.2% last quarter, reporting revenues of $762.1 million, down 11.7% year on year. It was a disappointing quarter for the company, with full-year revenue guidance missing analysts' expectations significantly and a significant miss of analysts' adjusted operating income estimates. Is Greenbrier a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Greenbrier's revenue to decline 4.2% year on year to $785.7 million, improving from the 21% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.99 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Greenbrier has missed Wall Street's revenue estimates three times over the last two years. Looking at Greenbrier's peers in the heavy machinery segment, only Lindsay has reported results so far. It beat analysts' revenue estimates by 4.6%, delivering year-on-year sales growth of 21.7%. The stock traded up 3.9% on the results. Read our full analysis of Lindsay's earnings results here. There has been positive sentiment among investors in the heavy machinery segment, with share prices up 7.2% on average over the last month. Greenbrier is up 6.8% during the same time and is heading into earnings with an average analyst price target of $49 (compared to the current share price of $47.72). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. 登入存取你的投資組合
Yahoo
2 hours ago
- Yahoo
Mach Natural Resources Stock Trading Below Recent Buy-In, Following Strong Q1 Performance
Mach Natural Resources LP (NYSE:MNR) is one of the 10 dividend bargains trading below insiders' prices. Following a solid financial performance in Q1 2025, the company witnessed a significant change in insider transactions in June. A team of packing house workers packaging specialty citrus for customer orders. Operating from its headquarters in Oklahoma, the independent upstream oil and gas company, Mach Natural Resources LP (NYSE:MNR) is focused on acquiring, developing, and producing oil, natural gas, and natural gas liquids. The company's core assets are located in the Anadarko Basin region, covering Western Oklahoma, Southern Kansas, and the Texas Panhandle. On May 8, 2025, the company reported its first quarter results, where it celebrated a strong financial performance. Though the market environment has been challenging, the company reaffirmed its outlook for the year, and through debt refinancing, it has successfully reduced its net debt ratio from 1.0 to 0.7 times, thus achieving significant savings in interest. Later, in June 2025, Mach Natural Resources LP (NYSE:MNR) drew the market's interest when William Wallace McMullen, a significant shareholder, purchased over 525,000 shares across two transactions totaling more than $7.5 million. With the last purchase price being $14.84 per share, Mach Natural Resources LP (NYSE:MNR) offers a substantial dividend yield of 22.04% at a bargain price of $14.34 as of June 25, 2025, making the stock a significant income prospect for investors. While we acknowledge the potential of MNR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Low Risk Dividend Paying Stocks for June 2025 and 10 Best Dividend Stocks According to Jim Cramer Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
7 hours ago
- CNBC
Stock futures rise after S&P 500 notches a fresh record high: Live updates
Traders work on the floor of the New York Stock Exchange on June 27, 2025. NYSE Stock futures rose Sunday evening as investors look to cap a stunning month for stocks. S&P 500 futures and Nasdaq 100 futures each added about 0.1%. Futures tied to the Dow Jones Industrial Average gained 130 points, or 0.3%. The market's swift recovery this month comes as investors continue to monitor the whipsaw of global trade negotiations, which can quickly sway market sentiment and pose an ongoing threat to the strength of this rally. Still, June's surge reflects the exuberance of investors who are relieved that most of the Trump administration's most dire tariff threats haven't been implemented. This month, the S&P 500 is up 4.4%, while the tech-heavy Nasdaq has jumped nearly 6.1%. The Dow, meanwhile, has added about 3.7% month to date. U.S. equities are also coming off a fresh high on Friday, with the S&P 500 reaching a new record in more than four months after ending the session about 0.5% higher at 6,173.07 — overtaking its previous record of 6,147.43. At its low in April, the S&P 500 was down nearly 18% for the year when global trade and tariff tensions rocked the market. The Nasdaq Composite hit an all-time high and closed at a record after adding about 0.5% on Friday, while the Dow Jones Industrial Average rose nearly 1%. Stocks on Friday had pulled back from their session highs after President Donald Trump posted on Truth Social that the U.S. is immediately "terminating ALL discussions on Trade with Canada" in response to Ottawa's decision to move forward with a digital services tax on American tech firms. But earlier in the day, stocks ran up after Commerce Secretary Howard Lutnick said late Thursday that a framework between China and the U.S. on trade had been finalized, and that the Trump administration soon expects to reach deals with 10 major trading partners. Investors remain confident that the strength in price indicates good news for the market moving forward, particularly as opportunities to buy the dip emerge. "The bearish narratives—Middle East conflict, tariffs, soft economic data—keep getting invalidated by the price action," said Ken Mahoney, CEO of Mahoney Asset Management. "Every chance the market has had to break down has failed. Instead, it continues to do what bull markets do best: climb the wall of worry. We think this run can continue, not without volatility to the downside of course."
