Reddit Shares Jump 11% Following Official S&P 500 Inclusion Announcement

Reddit $RDDT joins the S&P 500 index. Reddit $RDDT shares jumped 11% in extended trading on Thursday following the announcement. The company will officially join the benchmark index on Aug 18, replacing AvalonBay Communities Inc. Reddit becomes only the second pureplay social media company in the index alongside Meta $META. The inclusion follows eight consecutive quarters of sales growth topping 60%, despite search traffic volatility caused by Google AI Overviews. "AI Overviews has yet to make a similar level of positive impact, and that seems consistent across the broader landscape." — Steve Huffman Forced index fund buying gives the stock a temporary cushion, but it doesn't fix a business model perpetually exposed to Google search tweaks.