Reddit Joins the S&P 500 Tuesday. Here's What History Says Could Come Next -- and What Investors Should Know.
Shares of the social media company jumped double digits on the news. Decades of research say the pop is usually the whole prize.
Overview
Reddit (NYSE: RDDT) is going into the S&P 500 (SNPINDEX: ^GSPC). S&P Dow Jones Indices said Thursday evening that the social media company will replace AvalonBay Communities in the index before the market opens on Tuesday, Aug. 18. AvalonBay is leaving because a fellow index member, Equity Residential, is acquiring it.
Investors treated the announcement as a windfall. Reddit shares were up about 13% in Friday trading, near $179.
Details
Even after the jump, the stock sits roughly 37% below its 52-week high of $282.95.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.