Reddit, Inc. (NYSE:RDDT) is being Sued for Securities Fraud

I guess I didn’t realize just how much google ai would drop traffic to reddit.

Not sure why reddit lied….oh, Of course I know why. the lied because of money. Oh well, here’s hoping this is what brings down Reddit.

“Why was Reddit Sued for Securities Fraud?

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. The complaint alleges that Reddit misrepresented and downplayed the impact that Google’s use of Artificial Intelligence (“AI”) technology in Google's search results had 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 1, 2025, Reddit reported a significant slowdown in daily active user growth. On this news, the price of Reddit stock declined $4.96 per share, or more than 4%, from $118.79 per share on May 1, 2025, to $113.83 per share on May 2, 2025.

Then, 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.”

2 comments

I guess I didn’t realize just how much google ai would drop traffic to reddit.
Not sure why reddit lied….oh, Of course I know why. the lied because of money. Oh well, here’s hoping this is what brings down Reddit.
“Why was Reddit Sued for Securities Fraud?
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. The complaint alleges that Reddit misrepresented and downplayed the impact that Google’s use of Artificial Intelligence (“AI”) technology in Google's search results had 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 1, 2025, Reddit reported a significant slowdown in daily active user growth. On this news, the price of Reddit stock declined $4.96 per share, or more than 4%, from $118.79 per share on May 1, 2025, to $113.83 per share on May 2, 2025.
Then, 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.”
Lol fuckem