Reddit to Join the S&P 500. Will This Send the Stock Back to Its 52-Week High?

The article argues that Reddit’s upcoming inclusion in the S&P 500 on Aug. 18 could provide a near-term tailwind for the stock, since index-tracking funds will need to buy shares. Reddit has already rallied on the news, but it remains down 23% year to date and about 37% below its 52-week high, leaving room for further upside if demand persists. The piece also points to strong fundamentals: revenue rose 61% in the latest quarter to $805 million, and Reddit posted a $253 million profit, or 31% of revenue. While the stock is not cheap at more than 41 times earnings, the author views the growth and profitability as supportive of the valuation and suggests the S&P 500 addition is a meaningful positive catalyst rather than a full re-rating event.