Reddit to Join S&P 500, Shares Surge After Hours

Reddit, one of the largest U.S. online discussion platforms, went public in March 2024 at $34 a share. Its addition to the S&P 500, maintained by S&P Dow Jones Indices, would make it only the second pure-play social media company in the benchmark after Meta Platforms. Entry matters because index-tracking funds must buy constituent shares, while inclusion also signals that Reddit has met the benchmark’s standards for market value, liquidity and profitability.

Reddit is set to join the S&P 500 on Aug. 18, and its shares jumped nearly 12% in after-hours trading after the announcement. The rally came despite investor concern that Google’s AI-generated search summaries could reduce referral traffic to Reddit’s forums. Those worries have yet to derail the company’s financial momentum: Reddit has posted revenue growth of more than 60% for eight consecutive quarters, helping it satisfy index eligibility requirements and strengthening the case for broader institutional ownership.