Reddit will join the S&P 500 index next week, giving the wide-ranging online forum a significant boost in prestige and investment flows. The company’s stock surged 12.6 per cent on Friday following the announcement.
Inclusion in the S&P 500 is considered a milestone because the index is a widely followed measure of the broader US stock market’s health. Companies are selected based on criteria including market size and consistent profitability. Trillions of dollars in investments benchmark against the index, meaning funds that track or mimic it will need to buy the stock once it becomes part of the index.
