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Reddit Set to Join S&P 500 August 18, 2026

8/15/2026

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Summary

Reddit Joins S&P

S&P Dow Jones Indices announced Reddit will join the S&P 500 on August 18 2026, replacing AvalonBay Communities.
J.P. Morgan says index funds must buy about 16.7 million Reddit shares for $2.97 billion, prompting the stock to rise 11%-14% to around $176-$179 after the news.
Q2 2026 revenue hit $805 million (up 61% YoY) with net income $253 million and EPS $1.25, analysts saying the S&P 500 addition rally may already be priced in.

Summary

Reddit Expands

Reddit signed data-licensing deals worth hundreds of millions with OpenAI and Google to train on its forums.
Reddit is building ad-tech tools to take market share from Meta and Google.
S&P Dow Jones off-cycle rules demand a $22.7 billion market cap, four profitable quarters and set liquidity and float limits.
AvalonBay will leave the index after merging with Equity Residential into a $69 billion REIT renamed Vivmark Residential.

History

Historical Context

Google launched text-based keyword ads in 2000, went public in August 2004, and was added to the S&P 500 on March 31 2006, where its share price jumped 7% the next day. This boost illustrates how index inclusion can instantly lift tech valuations, a pattern echoed by Reddit’s scheduled S&P 500 entry later in August 2026.

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Reddit Joins S&P

S&P Dow Jones Indices announced Reddit will join the S&P 500 on August 18 2026, replacing AvalonBay Communities.
J.P. Morgan says index funds must buy about 16.7 million Reddit shares for $2.97 billion, prompting the stock to rise 11%-14% to around $176-$179 after the news.
Q2 2026 revenue hit $805 million (up 61% YoY) with net income $253 million and EPS $1.25, analysts saying the S&P 500 addition rally may already be priced in.

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