tech
Reddit stock jumps on inclusion in S&P 500
Reddit shares jumped on the company's inclusion in the S&P 500.
TL;DR
- Reddit shares rose 11% in extended trading due to its inclusion in the S&P 500.
- The company will join the S&P 500 on August 18, replacing AvalonBay Communities.
- Reddit is now one of only two pureplay social media companies in the S&P 500, alongside Meta.
- Companies often see stock price increases when added to major indexes.
- Reddit reported its eighth consecutive quarter of sales growth exceeding 60% in late July.
- Concerns were raised about Reddit's reliance on Google for new users, with its stock falling after the Q2 earnings report mentioned choppy search referrals.
- CEO Steve Huffman attributed search volatility to Google's AI Overviews.