Reddit Inc (NYSE:RDDT) shares jumped more than 16% on Friday after S&P Dow Jones Indices said the company will join the S&P 500 index next week. The inclusion is expected to trigger mandatory buying from institutional funds that track the benchmark.
Tesla shares surged 60% between the announcement of its S&P 500 inclusion and its addition to the index in December 2020, marking one of the largest inclusion-driven rallies on record, according to Charles Schwab. Other stocks don't hold onto an index-driven bump, however: Workday, which jumped nearly 10% on news of its inclusion, dropped 19% from its peak after joining the index in December 2024.
Shares in Reddit Inc (NYSE:RDDT), the social media platform, surged 12.45% in extended trading on Thursday after S&P Dow Jones Indices announced the business will join the S&P 500. The company will enter the prominent equity index before the US market opens on August 18.
Shares of Reddit Inc (NYSE:RDDT) are up 11.5% at $176.25 before the open, after news that the social media platform will join the S&P 500 Index (SPX) on Aug. 18, replacing AvalonBay Communities (AVB).
Plus, Flock moves to calm a backlash over its license-plate scanners and Instagram gets a new wordmark.
Although Wall Street loves a clean catalyst, and index inclusion is about as clean as they come, the record of the past year suggests the party rarely lasts.
Reddit (RDDT) will join the S&P 500, replacing AvalonBay Communities, driving RDDT shares up ~12% pre-market. Applied Materials (AMAT) delivered strong Q3 results and guidance, but shares fell 5% as investors expected more after a 98% YTD run.
Reddit has moved from marketers' periphery to the core as they try to influence large language models and consumer choices.
Reddit rallies with the social-media platform set to join the S&P 500, while Applied Materials dips after earnings fail to wow investors.
Mid-August 2026 might prove to be one of the best buying opportunities ever presented to hopeful Reddit (NASDAQ: RDDT) stock investors.
Reddit shares climbed nearly 13% in extended trading on Friday after S&P Dow Jones Indices announced that the social media platform will join the S&P 500, marking a significant milestone for the company less than two years after its public listing. The company will enter the benchmark index on Aug. 18, replacing AvalonBay Communities.
After past snubs, social-media site Reddit has landed a spot on the S&P 500, sending shares on an after-hours rally Thursday.