Reddit (RDDT) Stock Pops 11% After Earning a Spot in the S&P 500
TLDR
- Reddit will join the S&P 500 on August 18, replacing AvalonBay Communities
- RDDT stock jumped over 11% in after-hours trading following the announcement
- Reddit becomes only the second pure-play social media company in the S&P 500, after Meta
- The company has posted eight straight quarters of revenue growth above 60%
- RDDT was down 31% year-to-date before Thursday’s announcement
Reddit (RDDT) stock surged more than 11% in after-hours trading on Thursday after S&P Dow Jones Indices confirmed the company will join the S&P 500 on August 18.
Reddit replaces AvalonBay Communities, which is being removed from the index following its acquisition by fellow S&P 500 member Equity Residential.
The move makes Reddit only the second pure-play social media company in the S&P 500. Meta is the other. Pinterest and Snap are both smaller by market cap and remain outside the index.
Twitter held a spot in the S&P 500 until Elon Musk acquired the company in 2022. It’s now called X and is privately held under SpaceX.
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