Reddit will be added to the S&P 500 index before the market opens on August 18, replacing AvalonBay Communities on the list [1, 2]. The company's shares jumped more than 10% in after-hours trading on August 13, following the announcement [1, 2, 3].
Headquartered in San Francisco, Reddit went public in March 2024 and has seen rapid revenue growth, reporting over 60% growth in each of the last eight consecutive quarters through July 2026 [1]. The company's market capitalization surpassed the $22.7 billion threshold required for S&P 500 inclusion, meeting profitability, liquidity, and public float requirements set by the index [1].
Reddit will become the second pure social media company in the S&P 500 after Meta, highlighting its growing prominence in the sector [2]. Other social platforms like Pinterest and Snap remain outside the index due to smaller market caps, while Twitter was previously included before its acquisition [2].
The company has secured agreements worth hundreds of millions of dollars with tech giants OpenAI and Google to allow use of its platform data for AI training, supporting its growth trajectory [1].
The inclusion will take effect ahead of trading on August 18, marking a notable milestone for Reddit since its public debut just over two years ago.
