Reddit (RDDT) Stock: Jumps 11% on S&P 500 Inclusion Ahead of Aug. 18 Debut
TLDR
- Reddit shares surged more than 11% in after-hours trading.
- RDDT will join the S&P 500 before the market opens on August 18.
- Reddit will replace AvalonBay Communities in the benchmark.
- Q2 revenue rose 61% year over year to $805 million.
- Reddit reported $253 million in net income while search traffic volatility remains a concern.
Reddit stock surged more than 11% in after-hours trading Thursday after S&P Dow Jones Indices confirmed the social media company will join the S&P 500. RDDT shares rose as high as about $176 after closing the regular session at $158.12, up 3.04%.
Source: KnockOutStocks
Reddit will enter the benchmark before trading opens on August 18, replacing AvalonBay Communities. Equity Residential is acquiring AvalonBay, while the combined real estate company will remain in the S&P 500 under the new name Vivmark Residential.
Reddit S&P 500 Inclusion Drives RDDT Stock Higher
The S&P 500 addition creates new demand for Reddit shares from investment funds designed to track the benchmark. Index funds and exchange-traded funds that mirror the S&P 500 will need to adjust their portfolios to include RDDT when the change takes effect.
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