Reddit's Lawsuit Against Anthropic Moves Back to State Court
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 20 2026
0mins
Should l Buy RDDT?
Source: stocktwits
- Lawsuit Progress: The U.S. District Court for the Northern District of California tentatively granted Reddit's motion to remand its lawsuit against Anthropic back to state court, indicating that the court believes Reddit's claims involve qualitatively different rights than those protected by copyright law.
- Legal Arguments: Reddit's lawsuit alleges breach of contract and unjust enrichment, while Anthropic has attempted to keep the case in federal court by arguing that Reddit's claims implicate federal copyright law; however, the court found that these claims do not seek rights equivalent to those protected by copyright.
- Market Reaction: Following the court's preliminary ruling, Reddit (RDDT) stock jumped nearly 3% on Friday, reflecting positive investor sentiment regarding the case's progress, despite the company's shares having fallen 40% year-to-date.
- User Sentiment: On the Stocktwits platform, retail sentiment around RDDT stock trended in 'neutral' territory amid high message volume, with one user predicting that Reddit would either win the case or reach a settlement with Anthropic in light of the AI firm's potential IPO.
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Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 121.840
Low
207.00
Averages
260.00
High
325.00
Current: 121.840
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Income Assessment Bias: Most landlords rely on traditional income formulas that require tenants to earn three times the monthly rent, resulting in applicants with substantial assets being denied due to a lack of stable cash flow, revealing a misunderstanding of non-traditional financial situations in the rental market.
- Systemic Issues: Many commenters pointed out that the real problem lies within the rental system itself, particularly as large property management companies adhere to strict screening rules, leading to automatic rejections even for financially strong applicants who do not meet preset criteria, complicating the rental process.
- Response Strategy Suggestions: Applicants are advised to reframe their financial situation when applying, such as describing themselves as “financially independent” or “self-employed,” and to provide documentation like investment account statements and bank records to help landlords better understand their financial capacity, thereby increasing their chances of securing a rental.
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- Financial Background: During his tenure at Reddit, Drew Voller successfully improved the company's financial transparency and profitability, and Trade Desk hopes to leverage his experience in optimizing its financial structure in his new role.
- Market Reaction: The market responded positively to this appointment, with analysts believing that Voller's addition will help Trade Desk better navigate challenges in the rapidly evolving ad tech industry, thereby enhancing investor confidence.
- Strategic Significance: This appointment reflects Trade Desk's emphasis on diversifying and professionalizing its executive team, aiming to drive long-term growth and innovation by bringing in leaders with extensive experience.
See More
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- Yield Target Missed: The FY2025 BTC Yield was 22.8%, falling short of the 30% target, although each share represents more Bitcoin than before, which may undermine investor confidence in the company's future profitability.
- Dilution Risk: The company experienced a 52.6% expansion in share count in 2025, increasing from approximately 192.5 million to nearly 294 million shares, raising concerns about the management's capacity to dilute common shareholders' interests, especially amid falling Bitcoin prices.
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User Engagement and Advertising: The platform has seen a rise in daily active users, with over 121 million users welcomed in Q4 alone, which is a 19% increase year-over-year, contributing to a positive outlook for advertising revenue.
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