Reddit downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Ken Gawrelski downgraded Reddit (RDDT) to Equal Weight from Overweight with a price target of $115, down from $168. The firm says Reddit’s recent user disruptions are likely more permanent, as search behavior change accelerates with Google likely to fully integrate full artificial intelligence search capabilities search soon. The threats are not only to Reddit, but all the companies dependent upon search traffic, the analyst tells investors in a research note. Wells sees logged-out user declines for Reddit as Google more aggressive implements AI features in search. As such, the firm expects the stock’s multiple to remain under pressure from user disruption.