1159 ET - With Google likely to integrate full AI search capabilities over the next six months, Reddit's recent user disruptions could become a more permanent obstacle, Wells Fargo Securities analysts said in a research note. More AI search offerings will likely dent Reddit's search referrals, hurting its logged-out user activity, the analysts said. Such users are critical to logged-in user acquisition and extending the scale of advertiser reach, they said. With the long-term growth potential of Reddit's ad business now in danger, the analysts downgraded the stock to equal weight and cut their price target to $115 from $168. Shares fall 1.9% to $105.97. (kelly.cloonan@wsj.com)
(END) Dow Jones Newswires
May 20, 2025 11:59 ET (15:59 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.