Overview
- S&P Dow Jones Indices will add Reddit to the S&P 500 and the stock rose about 11% in after-hours trading on the announcement.
- Inclusion in the benchmark forces purchases by index-tracking funds that often lift a stock’s price in the days after a change.
- Reddit reported strong results in its most recent quarter, marking its eighth straight quarter of sales growth above 60 percent.
- Investors remain worried after the company said its "search referrals were choppy," and CEO Steve Huffman linked that volatility to Google’s Gemini-powered AI Overviews reducing clickthroughs from search.
- The same S&P rebalancing will put Sun Communities into the MidCap 400, and market watchers will be looking for whether referral trends cut Reddit’s new-user growth, ad revenue, and traffic for creators and publishers.