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Reddit (RDDT) shares tanked on March 26 after a California jury found Meta Platforms (META) and Alphabet's (GOOG) (GOOGL) Google liable for social media addiction, awarding a plaintiff $6 million in damages.
The ruling — which treats social media design as a defective product — sent shockwaves through the sector. As a result, RDDT sank below its 20-day moving average (MA), signaling a breakdown in short-term bullish momentum.