Why Reddit Stock Was Falling This Week
Shares of Reddit (NYSE: RDDT) were sliding this week in response to an analyst downgrade on the social media stock. It fell sharply in the broader sell-off on Wednesday in response to a weak Treasury auction and rising Treasury yields, perhaps reflecting a lack of confidence in the U.S. economy and recessionary fears.
According to S&P Global Market Intelligence, the stock was down 11.6% through Thursday at 2:10 p.m. ET.
Reddit faces a new threat
The stock fell 5% on Monday in response to Wells Fargo 's downgrade of Reddit stock from overweight to equal weight, with analyst Ken Gawrelski lowering its price target from $168 to $115.
The firm called out Alphabet 's Google's artificial intelligence (AI) advances and new AI search capabilities, believing that will likely sap Reddit's user growth, especially from logged-out users, which Gawrelski believes Reddit will need to maintain its strong growth rate. Additionally, the analyst said its data licensing business is incompatible with the long-term growth of the business, as it will leverage Reddit's knowledge base elsewhere.
On Wednesday, the stock tumbled again in line with the broader sell-off, losing 9.3% as growth stocks like Reddit are especially sensitive to rising interest rates and broader threats to the economy.
What's next for Reddit?
The social media stock has delivered strong results in a little over a year since it went public, driving strong user growth and ad revenue growth, and its AI-based data licensing business still appears to have a bright future.
Reddit has a unique and massive "corpus" of content on a wide range of topics, and it's more than a search hub, as users go there to get advice or feedback from other people, which is different from using an AI chatbot.
The company will have to continue delivering strong growth and improve its profitability, but one downgrade shouldn't shake investor confidence in the business.
Should you invest $1,000 in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $807,814!*
Now, it's worth noting Stock Advisor 's total average return is962% — a market-crushing outperformance compared to169%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of May 19, 2025
Wells Fargo is an advertising partner of Motley Fool Money. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Jeremy Bowman has positions in Wells Fargo. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
9 minutes ago
- Globe and Mail
2 Dividend Stocks to Hold for the Next 10 Years
"Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily understandable business whose earnings are virtually certain to be materially higher five, ten, and twenty years from now. [...] If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." -- Warren Buffett Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » A volatile stock market can set investors up for fantastic results. All you need is lots of patience and a bit of common sense. Dividend stocks can be especially effective in a swooning market, since their steady flow of passive income can make up for weak or unpredictable share price gains. And if you're setting up a dividend reinvestment plan (DRIP) to buy more stock with every dividend payout, you'll even build your portfolio faster when prices are low. If you're hunting for long-term investments that can grow your wealth, check out these two reliable dividend stocks. Yes, you've seen them before, and these recommendations keep coming around for good reason. 1. Coca-Cola Soft drink giant Coca-Cola (NYSE: KO) has been an income-generating mainstay in Warren Buffett's portfolio since 1988. With 400 million shares under his belt, Buffett's portfolio will rake in more than $816 million of dividend payments over the next year. I say "more than," because Coke is nearly guaranteed to boost its payout in the spring of 2026. I mean, the dividend bumps started in 1961 and never stopped. It would be nice to have 400 million Coca-Cola shares in that nest egg, but most people can't make that $29 billion commitment at the drop of a soda can. I'm bringing up Buffett's investment to highlight how reliable Coca-Cola's dividend increases are. The cost basis for Berkshire Hathaway 's (NYSE: BRK.A)(NYSE: BRK.B) Coca-Cola position was $3.2475 per share. The current dividend of $2.04 per year works out to an effective yield of 62.8%. Buffett never added any more Coke shares to this position, trusting himself and his staff to come up with better investment ideas than automatic reinvestment in more Coke shares. That's fine if you're a legendary investor. For the rest of us, there's nothing wrong with setting up a DRIP plan with Coca-Cola stock. Let's say you invested about $10,000 in Coca-Cola 10 years ago. That would be 250 shares at $40 each. In June 2025, this investment would be worth about $24,460, with 337 shares in that portfolio. The dividend payout works out to at least $687 over the next year, for an effective yield of 6.9%. Those yield figures keep rising over the years, especially for stable brand-name stocks like Coca-Cola. Past performance doesn't guarantee future results, but I see no reason why Coca-Cola would turn away from this shareholder-friendly dividend policy over the next decade. Grabbing a few shares today should set you up for generous cash payouts later on. 2. IBM Good old Big Blue is another proven dividend stock. International Business Machines (NYSE: IBM) has been paying quarterly dividends since 1916, with an unbroken streak of annual increases going back to 1995. At $6.72 per year (and rising), IBM's dividends result in a modest 2.4% yield right now. It used to be higher, but the stock soared 62% over the last year, and it's hard to keep up with those gains. Let's run the numbers on the same 10-year investment results as you saw in the Coca-Cola analysis. $10,000 would have bought 63 IBM shares in June 2015. This hypothetical holding would be worth $26,370 today, assuming an active DRIP policy along the way. The number of shares would be up to nearly 96 -- a 52% increase thanks to a long stretch of low-priced IBM shares. The effective yield in this case is 6.4%, with annual payouts of approximately $644. The company's transformation from an all-you-can-eat enterprise technology shop to a focused software and services expert wasn't easy, but it's paying literal dividends to patient shareholders nowadays. IBM is a leading innovator in artificial intelligence (AI). The company just announced a game-changing quantum computing center, breaking ground for a 2029 opening. This "boring old company" is getting into the hottest growth ideas in 2025. So IBM's stock is the best of both worlds. It's an exciting growth story, paired with a terrific commitment to dividends. And the stock trades at a modest 20.3 times free cash flow. What's not to love about owning Big Blue for the next 10 years? Should you invest $1,000 in International Business Machines right now? Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
National Post
23 minutes ago
- National Post
AI-Designed GLP-1 Peptides from ImmunoPrecise Antibodies Surpass Semaglutide in Receptor Activation Studies
Article content AUSTIN, Texas — ImmunoPrecise Antibodies Ltd. (NASDAQ: IPA), a leader in AI-powered drug discovery and biotherapeutics, today announced compelling in vitro results demonstrating that its artificial intelligence (AI)-designed GLP-1 receptor agonist (GLP-1RA) peptide sequences achieve comparable or superior receptor activation to Semaglutide, a benchmark GLP-1 therapy and one of the most commercially successful drugs in the world. The in vitro analysis was conducted by an independent third party, further strengthening the objectivity and reliability of the findings. Article content The results validate the power of IPA's LENSai™ platform and its proprietary HYFT™ technology, which enables first-principles-based in silico peptide discovery and optimization. Five rationally engineered peptide sequences—AI-optimized for improved stability and peptidase resistance—were tested against benchmark GLP-1 analogs in receptor activation assays. Two lead candidates outperformed or matched Semaglutide under controlled assay conditions. Article content Crucially, the sequences were not discovered by chance. They were designed using HYFT-derived intrinsic biological patterns—mathematical representations of functional relationships in biology—making this approach highly reproducible and generalizable to other drug targets. Article content With GLP-1 therapies representing one of the fastest-growing segments in the global pharmaceutical market, these results demonstrate that AI can now generate not only predictive but functionally validated peptide drugs, paving the way for rapid expansion into adjacent therapeutic areas using the same HYFT-driven approach. Article content 'This is not a one-off success,' said Dr. Jennifer Bath, CEO of ImmunoPrecise. 'We've demonstrated a scalable, first-principles mechanism to design potent, stable, and biologically active peptide therapeutics. HYFT-guided design unlocks repeatable workflows for other validated targets—whether in cardiometabolic disease, oncology, or infectious disease. It represents a foundational shift in how therapeutics are discovered. The same LENSai-driven approach has already transformed our vaccine and antibody discovery programs, and we are now applying that rinse-and-repeat methodology to metabolic diseases—starting with GLP-1.' Article content IPA is now considering two complementary preclinical paths for its lead GLP-1 candidates: Article content Injectable delivery studies, including pharmacokinetic profiling and efficacy validation in animal models. Non-invasive delivery strategies, including formulation work for transdermal patches and exploratory evaluation of nucleic acid-based delivery, designed to enhance durability, patient compliance, and ease of administration. Article content The sequences were also engineered for compatibility with next-generation expression systems, including nucleic acid-based vectors, which support scalable expression in both traditional and emerging human-relevant models, aligning with evolving regulatory interest in more predictive, flexible, and efficient therapeutic development approaches. Article content The significance of this breakthrough extends far beyond GLP-1. The same AI framework and HYFT-driven approach that generated these potent peptide drugs can now be applied to other high-value therapeutic targets—quickly, efficiently, and with built-in biological relevance. Article content This announcement follows IPA's recent success with AI-designed dengue virus vaccine candidates, reinforcing the broad applicability of its technology across both infectious and non-infectious diseases. Article content About ImmunoPrecise Antibodies Ltd. Article content ImmunoPrecise (NASDAQ: IPA) is a global leader in AI-powered biotherapeutic discovery and development. Its proprietary HYFT™ technology and LENSai™ platform enable first-principles-based drug design, delivering validated therapeutic candidates across modalities and therapeutic areas. IPA partners with 19 of the top 20 pharmaceutical companies and is advancing next-generation biologics through data-driven, human-relevant models. Article content Forward-Looking Statements Article content This press release contains forward-looking statements within the meaning of applicable United States and Canadian securities laws. Forward-looking statements are often identified by words such as 'expects,' 'intends,' 'plans,' 'anticipates,' 'believes,' or similar expressions, or statements that certain actions, events, or results 'may,' 'will,' 'could,' or 'might' occur or be achieved. These statements include, but are not limited to, those related to the anticipated benefits, scalability, translatability, adoption, and broader application of the LENSai™ and HYFT® platforms; the advancement and regulatory acceptance of AI-native drug discovery methods; the continued development and potential preclinical or clinical progression of IPA's AI-designed GLP-1 peptide program; the feasibility of next-generation delivery strategies; and the Company's ongoing ability to maintain scientific, regulatory, and commercial momentum in this and related therapeutic areas. Article content Forward-looking statements are based on management's current expectations, assumptions, and projections about future events. Actual results may differ materially from those expressed or implied due to a variety of factors, many of which are beyond the Company's control. Such factors include, but are not limited to, scientific or technological developments, changes in regulatory requirements or acceptance of AI-designed therapeutics, competitive or market dynamics, intellectual property protection and enforcement, risks related to preclinical or clinical validation, integration or operational risks, and changes in economic or business conditions. Article content Forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause actual results, performance, or achievements to differ materially from those expressed or implied herein. Additional information regarding risks and uncertainties is included in the Company's Annual Report on Form 20-F, as amended, for the year ended April 30, 2024 (available on the Company's SEDAR+ profile at and EDGAR profile at Should any of these risks materialize, actual results could vary significantly from those currently anticipated. Article content Article content Article content Article content Article content Article content
National Post
23 minutes ago
- National Post
Locala Launches Omni Planner to Unify Engagement Data for Actionable Media Strategies
Article content Omni Planner unifies online and offline insights to deliver clearer, more actionable strategies that boost brand engagement in every market. Article content NEW YORK — Locala has launched Omni Planner, a new solution that helps advertisers unify online and offline engagement data to improve performance across digital and in-store channels. Designed to simplify campaign planning and move marketers from insight to action, Omni Planner combines digital and real-world signals to deliver full-funnel visibility and locally tailored strategies. This enables advertisers to plan more efficiently and drive stronger results in every market. Article content By incorporating Digital Data from Similarweb into its planning capabilities, Locala deepens its investment in full-funnel insights, empowering brands and advertisers with the data they need to drive performance and protect overall business health. Article content 'In a world where the consumer journey spans devices and physical spaces, marketers need more than siloed metrics,' said Christophe Collet, CEO & Founder at Locala. 'Omni Planner is built on a decade of experience helping brands navigate fragmented markets, and it gives them a unified foundation to plan with confidence, both online and on the ground, market by market.' Article content While the solution is grounded in data integration, its power lies in helping marketers adapt strategies to local realities with ease. Built specifically for advertisers and marketers, Omni Planner eliminates the complexity of manual planning while unlocking more strategic control. Instead of generic national rollouts or disconnected tools, it equips teams with: Article content A unified view of online and offline engagement data to drive clear, cross-environment insights Competitive benchmarks that reveal how performance stacks up across digital and real-world environments Localized, scalable media plans without the hassle of manual market-by-market planning Article content 'Marketers need a holistic view of consumer behavior to plan effectively,' said Alyssa Lewis, General Manager, SVP Global Investor Vertical and OEM at Similarweb. 'By combining Similarweb's website data with Locala's real-world data, Omni Planner gives advertisers the insights they need to plan smarter and move faster.' Article content Omni Planner enables marketers to fine-tune strategy where it matters most, without the resource drain of building complex, personalized plans from scratch. And while the solution is new, Locala's localized, engagement-based approach has already demonstrated strong impact. Brands that have implemented this methodology have reported a 25% increase in attention, a 70% lift in brand preference, and a 30% boost in store visitation compared to traditional media strategies. Article content 's omnichannel advertising platform leverages granular insights and cutting-edge AI to help marketers efficiently plan, activate, and measure campaigns personalized to the local consumer. Our platform specializes in transforming complex mobility and consumer data into actionable audience insights, fueling advanced media strategies that consistently deliver smarter business outcomes. Since its inception in 2012, Locala has proudly worked with leading brands across 40 countries. With over 180 employees around the globe, Locala has offices in the United States, France, Belgium, the UK, Singapore, Malaysia, Italy, Canada, and Dubai. Article content Article content Article content Article content Article content
