Markets· August 16, 2026 at 04:11 p.m.
Reddit Stock Surges on S&P 500 Inclusion: Who Buys and What Happens Next
Key takeaways
- Approximately 16.7 million shares of Reddit could be demanded by index funds
- Existing shareholders may sell into the anticipated demand
- The stock's performance post-inclusion may indicate investor sentiment towards Reddit's long-term prospects
On Friday, Reddit shares surged more than 11% following an announcement by S&P Dow Jones Indices that the company will join the S&P 500 on August 18. The surge is due to index funds needing to buy the stock, with demand potentially reaching approximately 16.7 million (RDDT) shares according to J.P. Morgan. However, the question remains about how much of this buying has already been anticipated and who will sell into it. The inclusion does not change Reddit's advertising business or management guidance.
