Meet the Newest Member of the S&P 500. It's Up 365% Since Its IPO, and It Can Keep Climbing From Here.
Fears of AI disruption may have created an incredible buying opportunity for this company.
Overview
The S&P 500 (SNPINDEX: ^GSPC) is widely regarded as the most important U.S. stock index. To be included in the index, a U.S.-based company must meet a set of criteria, including demonstrating consistent profitability. While the committee typically adds and removes constituent companies from the index quarterly, it occasionally needs to add a new company mid-quarter.
Such is the case with the most recent addition. After AvalonBay Communities merged with Equity Residential to form Vivmark, the index found itself one company short. The committee selected Reddit (NYSE: RDDT) to replace it. The social media stock made its market debut just a couple of years ago, but it's already up 365% from its IPO price as of this writing.
Details
The good news is it's not too late to buy into Reddit. Some recent headwinds have created a buying opportunity for long-term investors.
Source
Originally published at www.fool.com.