** Wells Fargo downgrades social media platform Reddit RDDT.N to "equal weight" from "overweight", trims PT to $115 from $168
** New PT implies ~1.6% upside to stock's previous close
** RDDT's shares fall 6.3% to $106.04 premarket
** Brokerage says Reddit's user base is likely to decline due to changes in search user behavior and Google's integration of AI search capabilities
** Decline in logged-out users will also impact logged-in user growth and high-margin data licensing revenue, Wells Fargo says
** Adds decline in user base will affect not only RDDT but also other companies that rely on search traffic
** Reddit's data licensing business may be at risk due to increasing use of AI-powered search tools and co may need to prioritize internal monetization of its content and data to minimize long-term risk, Wells Fargo says
** As of last close, RDDT stock down 30.7% YTD
(Reporting by Padmanabhan Ananthan)
((Padmanabhan.Ananthan@thomsonreuters.com))
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