Reddit shares surge 10.7% on S&P 500 inclusion announcement

Published Aug 14, 06:45 PM UTC

Reddit (NYSE: RDDT) shares jumped 10.7% on August 14, 2026, following the announcement that the social media company will join the S&P 500 index, replacing AvalonBay Communities after its acquisition by Equity Residential. The index inclusion triggers automatic buying by funds tracking the S&P 500, with JPMorgan estimating approximately 16.7 million Reddit shares will be purchased. The company reported strong Q2 results with $805 million in revenue (up 61% year-over-year) and $253 million in net income, while daily active users grew 18%. However, the article notes a significant risk: AI-generated search results are increasingly preventing users from clicking through to Reddit's platform, which could threaten the company's growth trajectory needed to support its current valuation.