A hand holding a phone with the Reddit logo_ Mamun_Sheikh via Shutterstock_
During a Reddit AMA hosted 11 years ago, a user named GiveMeYourShekels asked newly anointed CEO Steve Huffman a couple of questions:
Steve, I’m a huge fan and I’d like to ask what your thoughts are about reddit being a potential game changer in politics and pop culture. Do you believe that the reddit community has an ability to sway public opinion and policy? Did you intend this when you created reddit?
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Posting under his username, spez, Huffman replied:
Yes, we have an amazing opportunity to change the world.
No, I just didn’t want to look stupid in front of my parents.
Today, after the market close, S&P Dow Jones Indices announced that Reddit (RDDT) will replace acquisition target AvalonBay Communities (AVB) in its benchmark S&P 500 Index ($SPX), with the change taking place effective prior to the opening of trading on Tuesday, Aug. 18.
Right now, it seems safe to say that Huffman doesn’t look stupid in front of his parents.
How the News Affects Reddit Stock
News of Reddit’s impending inclusion in the S&P 500 represents a remarkable milestone for the social media company. This index addition validates Reddit’s evolution from a college-era side project into a company that meets the stringent eligibility criteria for America’s most closely watched equity benchmark.
The S&P 500 inclusion is particularly noteworthy given Reddit’s challenging stock performance in 2026.
As of mid-August, RDDT was trading around $153.45 and had declined approximately 31% year to date, making it one of the weaker performers among digital advertising peers.
The announcement triggered an 11% after-hours surge in RDDT shares. Index inclusion will mechanically drive significant passive fund buying, as the hundreds of billions of dollars benchmarked to the S&P 500 must now allocate capital to Reddit shares.
This structural demand…
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