Reddit shares climbed 12.6% to $178.09 on August 14 after S&P Dow Jones Indices said the social-media company would join the S&P 500 before trading begins on August 18. J.P. Morgan estimates index-tracking funds will need about 16.7 million Reddit shares, nearly three times the stock's average daily volume of 5.98 million since its March 2024 IPO. Second-quarter revenue rose 61% to $805 million, beating the $730.4 million consensus, and the company guided third-quarter revenue to $860 million to $870 million, above the $829.1 million estimate. Stephens analyst Melissa Roberts noted new S&P 500 members historically lag the index by about 2% in the three months after inclusion, and Reddit still faces slowing U.S. user growth as search referrals become choppier.
Reddit, Inc.S&P 500 inclusion and strong earnings beat
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