Reddit to Join the S&P 500 on Aug. 18 as Shares Jump More Than 15%

News Editor

2026-08-15 04:52:19

S&P Dow Jones Indices said Thursday that Reddit (NYSE: RDDT) will be added to the S&P 500 before the market opens on Aug. 18, taking the spot vacated by AvalonBay Communities after a recent merger made it ineligible for the index. The announcement pushed Reddit shares up more than 15% during the trading session, with the stock at $178.09 by press time. The report said Reddit met the index’s screening rules, including four straight quarters of profitability and the required market capitalization threshold. Once the change takes effect, the stock will enter the portfolios of funds that track the S&P 500, including products named in the report such as the Vanguard S&P 500 ETF, iShares S&P 500 ETF, Fidelity 500 Index Fund, and Schwab S&P 500 Index Fund. ABMedia also noted that Reddit shares are still down more than 22% year to date despite the rally, and remain below the company’s previous high of $280. The article compared Reddit’s inclusion with past examples such as Tesla, which rose as much as 60% around its 2020 S&P 500 entry, and Workday, which initially gained nearly 10% but later pulled back about 19% after joining the index. The report added that Reddit has improved operations since its March 2024 IPO, helped by daily active user growth and advertising and data licensing deals with Google and OpenAI.

S&P Dow Jones Indices said Thursday that Reddit (NYSE: RDDT) will join the S&P 500 before the market opens on Aug. 18. The company is taking the place left open after AvalonBay Communities lost eligibility for the index following a recent merger.

Reddit to Join the S&P 500 on Aug. 18 as Shares Jump More Than 15% 2

The news sent Reddit shares sharply higher. During the trading session, the stock climbed more than 15%, and it was at $178.09 by press time.

Reddit set to enter S&P 500-linked fund flows

According to the report, Reddit qualified for inclusion because it met the S&P 500’s screening requirements, including four consecutive profitable quarters and the required market capitalization threshold.

Once the change becomes effective on Aug. 18, Reddit will be added automatically to funds that track the benchmark. The article specifically named the Vanguard S&P 500 ETF, iShares S&P 500 ETF, Fidelity 500 Index Fund, and Schwab S&P 500 Index Fund.

Shares have pulled back this year despite the index-driven rally

Before the inclusion announcement, Reddit had already gone through a notable correction this year. The report said the stock briefly moved back toward $180 after the headline, but it was still down more than 22% on a year-to-date basis and remained below its previous peak of $280.

Tesla and Workday cited as past comparison cases

The article pointed to other large companies to show how stock performance can vary after index inclusion. Tesla was cited as having gained as much as 60% around its December 2020 addition to the S&P 500.

Workday was presented as a different example. ABMedia wrote that when the software company joined the S&P 500 in December 2024, the initial announcement lifted the stock by nearly 10%, but shares later fell about 19% from their high after the formal inclusion.

Operations improved after the March 2024 IPO

The report said Reddit has turned profitable since its public listing in March 2024, helped by strong growth in daily active users and advertising and data licensing agreements with Google and OpenAI.

It also said Reddit has turned its large archive of community discussion data into an important resource for training artificial intelligence models. The article described Reddit as one of the few social media platforms to enter the S&P 500 after Meta.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.

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