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Online forum Reddit will join the
influential and closely tracked S&P 500 index
[August 15, 2026]
NEW YORK (AP) — Reddit will join the S&P 500 next week, giving
the wide-ranging online forum a boost in prestige and investments.
Joining the S&P 500 is considered an achievement for a company because
the index is a widely followed measure of the broader U.S. stock
market’s health. A company is selected for the index based on several
criteria that demonstrate stability, including market size and
consistent profitability. |
Reddit Inc. logos are displayed on the New York Stock Exchange trading
floor, prior to the company's IPO, Thursday, March. 21, 2024. (AP
Photo/Yuki Iwamura, File) |
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Reddit's stock surged 12.6% Friday.
Aside from status, inclusion means more investments. The index
tracks 500 of the biggest U.S. stocks, and trillions of dollars
in investments benchmark themselves against it. Those
investments include mutual funds and exchange-traded funds.
Essentially, those funds will have to buy the stock once it
becomes part of the index that the fund is tracking or
mimicking.
Investors are depending more than ever on funds that simply
mimic indexes such as the S&P 500. It’s a lower-cost way to
invest, allowing savers to keep more of their investments.
Partly because of that, such index funds have usually proven to
be better performers than funds that try to pick and choose
individual stocks.
Reddit will join the benchmark index as of Tuesday. A stock must
trade publicly for at least 12 months to join the S&P 500. The
operator of the index, S&P Dow Jones Indices, stuck to that
guideline recently when it declined to fast-track SpaceX into
the index after the space exploration company's massive initial
public offering in June.
Reddit's inclusion comes weeks after it posted strong financial
results for the second quarter. That included its highest-ever
quarterly revenue. The company has been posting profits almost
every quarter since it went public in 2024.
Wall Street expects profits to more than double overall in 2026
on a surge in revenue.
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