Reddit soars ahead of S&P 500 inclusion

Reddit

14/08/2026 11:06

** Social media platform Reddit's RDDT.N shares surge 12.3% to $177.49 premarket on Fri as co poised to join S&P 500 index next week
** RDDT to replace AvalonBay Communities AVB.N in SPX effective Tues, Aug 18, S&P Dow Jones Indices announced late Thurs
** Apartment rental co AVB being acquired by SPX member Equity Residential EQR.N in mega-REIT deal
** Stephens analyst Melissa Roberts said in a note she expects passive funds will need to purchase 25 mln RDDT shares which implies nearly 5 days of buying demand
** New SPX adds historically outperformed (+6.8%) from announcement to add, with bulk of outperformance occurring on the day post announcement (5.9%), Roberts said
** San Francisco-based RDDT, which went public in Mar 2024, has ~192.4 mln shares outstanding for $30 bln market cap
** Last month, RDDT reported Q2 rev beat and forecast current qtr rev above consensus, but said choppy search-engine traffic had impacted U.S. user growth in Q2
** Through Thurs close, shares shed 31% YTD
** Avg rating of 31 analysts is "buy"; median PT $221, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)
((lance.tupper@tr.com 1-646-279-6380))