Reddit Stock Pops 11% on S&P 500 Inclusion Despite Google AI Traffic Concerns

Reddit shares surged 11% in extended trading Thursday after S&P Dow Jones Indices confirmed the platform will join the S&P 500.

Reddit is only the second pureplay social media stock in the benchmark index after Meta.

Reddit's Index Debut, By the Numbers

S&P Dow Jones Indices said Reddit (RDDT) will replace AvalonBay Communities in the S&P 500 before trading opens on Aug. 18, 2026, once Equity Residential completes its acquisition of AvalonBay.

Reddit shares climbed to $175.38 in postmarket trading following the news, up from Thursday's $153.12 close, a gain of nearly 11%, according to TradingView data.

Index funds that track the S&P 500 must now buy Reddit shares to match the benchmark, a mechanical demand shock that helps explain jumps like this even absent fresh business news.

The same announcement added Sun Communities to the S&P MidCap 400 effective Aug. 20, replacing Webster Financial as Banco Santander's acquisition of Webster nears completion.

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