Reddit set to join S&P 500 stock index next week

Reddit will join the S&P 500 index on Tuesday, a move that raises the online forum's profile and is expected to draw more investment. The S&P 500 tracks 500 of the largest U.S. companies and serves as a widely followed gauge of the broader stock market's health.

Companies are added to the index based on criteria including market size and consistent profitability. Trillions of dollars in mutual funds and exchange-traded funds benchmark themselves against the S&P 500, meaning those funds must buy Reddit stock once it becomes part of the index they track.

A company must trade publicly for at least 12 months before joining the index, a rule that led S&P Dow Jones Indices to decline fast-tracking SpaceX after its initial public offering in June. Reddit's addition comes after it reported its highest-ever quarterly revenue and has posted profits in nearly every quarter since going public in 2024.

Wall Street expects Reddit's profits to more than double in 2026 on a surge in revenue.

Read the full story at bostonherald.com.