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flag Reddit faces investigation over alleged securities law violations, causing its stock to drop 9%.

flag Reddit, Inc. is under investigation for potential securities law violations, with claims that the company misled investors about the impact of Google's AI on its user growth. flag This led to a 9% drop in Reddit's stock price. flag Despite this, RBC Capital has given Reddit a "Sector Perform" rating and a price target of $125, noting both potential growth from user activity and concerns about unstable traffic sources.

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