Reddit leaps 12% after-hours trading on S&P 500 inclusion news

Reddit shares jumped about 12% in after-hours trading Thursday after S&P Dow Jones Indices announced that the user-generated content platform will join the S&P 500 on Aug. 18.

The company will become the second pure-play social media platform in the S&P 500 when its inclusion takes effect, following Meta Platforms.

Reddit will replace AvalonBay Communities, which is being acquired by Equity Residential, according to the announcement. Sun Communities will also join the S&P MidCap 400 on Aug. 20, replacing Webster Financial following its planned acquisition by Banco Santander.

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