Reddit shares jumped 11% in extended trading Thursday after S&P Dow Jones Indices announced the social media company will be added to the S&P 500.
Reddit will join the benchmark index on Aug. 18, replacing AvalonBay Communities, according to a release from the index provider. The move makes Reddit only the second pureplay social media company in the S&P 500, alongside Meta, one of the world’s most valuable companies.
Companies often see their stocks climb when they are added to major indexes because fund managers who track the benchmarks must buy shares to align their portfolios with the changes.
Reddit, which hosts online forums on thousands of topics, went public in 2024. Pinterest and Snap both went public long before Reddit, but they remain smaller by market cap. Twitter was previously in the S&P 500 until it was acquired by Elon Musk in 2022; it is now called X and owned by SpaceX.
The index addition comes after a volatile period for Reddit shares. The company reported second-quarter earnings in late July, posting its eighth straight quarter of sales growth topping 60%. But the stock fell after the company told investors that its “search referrals were choppy,” raising concerns about Reddit’s reliance on Google for new users.
CEO Steve Huffman attributed the search volatility to Google increasingly pushing its Gemini-powered AI Overviews, which have reduced the visibility of Reddit links in some search results.
As part of the announced changes, Sun Communities will join the S&P MidCap 400, replacing Webster Financial.
Source: www.cnbc.com — https://www.cnbc.com/2026/08/13/reddit-shares-jump-11percent-on-inclusion-in-sp-500.html
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