reddit Shares rose 11% in after-hours trading Thursday following the social media company’s inclusion in the S&P 500.
The company will instead join the index on August 18th. Avalon Bay Communityaccording to a release from S&P Dow Jones Indices.
Fund managers that track benchmarks have to buy stocks as they change, so companies often see their stock prices rise when they’re included in major indexes.
Reddit, which hosts online forums on thousands of topics, becomes the second-most pure social media company in the S&P 500. metaone of the most valuable companies in the world is another.
pinterest and snap Both went public long before Reddit, but both have smaller market capitalizations. Twitter was included in the S&P 500 until it was acquired by Elon Musk in 2022. It is now called and owned by X. space x.
Reddit reported its second-quarter earnings in late July, revealing eight consecutive quarters of more than 60% revenue growth. But the stock price plummeted after the company told investors that “search referrals are choppy,” raising concerns about Reddit’s dependence on Google for new users.
Reddit CEO Steve Huffman said Google’s push to increasingly outline AI powered by Gemini is the cause of the instability in search.
As part of the changes announced Thursday, sun community It replaces the S&P MidCap 400. webster financial.
