Reddit stock jumps on inclusion in S&P 500

JUST IN: $RDDT shares jump 11% after hours on Reddit's inclusion in the S&P 500, effective Aug 18.

Reddit just got called up to the S&P 500, and the stock jumped eleven percent after hours.

Effective August 18, Reddit replaces AvalonBay Communities in the index, and you can see the announcement here. The mechanics are boring but powerful, every fund tracking the benchmark now has to buy the shares to match it, so that pop is forced buying, not vibes.

What made me sit up is the company it keeps. Reddit becomes only the second pureplay social media name in the index, alongside Meta. Snap and Pinterest went public years earlier and never made the cut. Twitter was in there too, until Elon Musk took it private in 2022.

And remember, just weeks ago this stock tanked on Google worries. CEO Steve Huffman said search referrals went choppy because Google keeps pushing its AI Overviews. Eight straight quarters of sixty percent sales growth, and the whole business still leans on someone else's front door. Index membership doesn't change that.

This is Angel Manalo, reporting for HIT.

Source Read the original reporting at cnbc.com