--- title: Reddit is joining the S&P 500 with its stock down 31%... description: Reddit will join the S&P 500 on 18 August, replacing AvalonBay after Equity Residential's acquisition created an off-cycle vacancy, with Sun Communities... canonical: https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Reddit is joining the S&P 500 with its stock down 31% this year | daily.dev og:description: Reddit will join the S&P 500 on 18 August, replacing AvalonBay after Equity Residential's acquisition created an off-cycle vacancy, with Sun Communities... og:url: https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma og:image: https://api.daily.dev/og/posts/Kl3LkfrmA.png og:image:alt: Reddit is joining the S&P 500 with its stock down 31% this year og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Reddit is joining the S&P 500 with its stock down 31% this year **[The Next Web](https://daily.dev/sources/tnw)** · 6 min read · 6 upvotes · 1 comments ## Summary Reddit will join the S&P 500 on 18 August, replacing AvalonBay after Equity Residential's acquisition created an off-cycle vacancy, with Sun Communities separately replacing Webster Financial in the MidCap 400. Shares jumped 11% on the news despite being down 31% for the year, driven mainly by passive index-fund buying rather than sentiment. Reddit's own release frames the company as an AI-era data asset, citing 26 billion posts and 130 million daily active uniques, and highlights AI licensing deals with OpenAI and Google. The Google deal, signed in 2024 at roughly $60m a year, is up for renewal, with Reddit pushing for usage-based pricing after AI Overviews contributed to a 20% stock drop last quarter despite strong revenue growth. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### When does Reddit officially join the S&P 500 and who is it replacing? Reddit joins the S&P 500 on 18 August, taking the seat vacated by AvalonBay Communities, which is being absorbed into Equity Residential to form a company renamed Vivmark Residential that keeps its index spot. The change was announced by the index provider on 13 August. Reddit trades on the NYSE as RDDT and enters under the Communication Services sector. _Track how index inclusions like Reddit's ripple through markets by following daily.dev's tech and business coverage._ ### Why did Reddit stock rise 11% while still being down 31% for the year? Shares jumped about 11% in extended trading after the S&P 500 inclusion announcement because passive index funds tracking the benchmark must buy the stock regardless of sentiment, closing at $158.12 beforehand. Despite this, Reddit remained down 31% year-to-date, reflecting investor concern over choppy search referral trends tied to Google's AI Overviews rather than the company's underlying business, which posted 61% revenue growth to $805m. _Developers weighing how AI search changes affect referral-dependent products can follow this story on daily.dev._ ### What is Reddit negotiating with Google over its AI data licensing deal? Reddit is seeking to renegotiate its AI training data agreement with Google, originally signed in 2024 at roughly $60m a year, to shift from a flat fee to usage-based pricing. Google occupies three roles for Reddit simultaneously: it sends traffic, pays to license data for training, and runs the AI Overviews product that has been cutting into Reddit's search referral traffic. _Anyone tracking how AI licensing deals reshape content platforms can follow developments like this on daily.dev._ ## Similar posts on daily.dev - [Reddit Q1 revenue jumps 69% to $663m, and shares rally 9%](https://daily.dev/posts/reddit-q1-revenue-jumps-69-to-663m-and-shares-rally-9--qqv04jyxm) · The Next Web · 0 upvotes · 0 comments - [People are finally using Reddit's search](https://daily.dev/posts/people-are-finally-using-reddit-s-search-y5a0augp0) · TechCrunch · 0 upvotes · 0 comments - [Reddit looks to AI search as its next big opportunity](https://daily.dev/posts/reddit-looks-to-ai-search-as-its-next-big-opportunity-8bobbzks7) · TechCrunch · 1 upvotes · 0 comments - [Reddit says it’s looking for more acquisitions in adtech and elsewhere](https://daily.dev/posts/reddit-says-it-s-looking-for-more-acquisitions-in-adtech-and-elsewhere-dq82wmvyq) · TechCrunch · 0 upvotes · 0 comments --- Tags: [#google](https://daily.dev/tags/google), [#investing](https://daily.dev/tags/investing) [View this post on daily.dev](https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Reddit is joining the S&P 500 with its stock down 31% this year","url":"https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma"},"datePublished":"2026-08-14T13:47:46.716Z","dateModified":"2026-09-13T19:07:25.453Z","description":"Reddit will join the S&P 500 on 18 August, replacing AvalonBay after Equity Residential's acquisition created an off-cycle vacancy, with Sun Communities...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/70e19670f92b1162c5d2a0418fc62e6c?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/70e19670f92b1162c5d2a0418fc62e6c?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"The Next Web","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"The Next Web","logo":"https://media.daily.dev/image/upload/t_logo,f_auto/v1/logos/tnw","url":"https://daily.dev/sources/tnw"},"commentCount":1,"discussionUrl":"https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":6},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":1}],"keywords":"google,investing","timeRequired":"PT6M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"The Next Web","item":"https://daily.dev/sources/tnw"},{"@type":"ListItem","position":3,"name":"Reddit is joining the S&P 500 with its stock down 31% this year"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/reddit-is-joining-the-s-p-500-with-its-stock-down-31-this-year-kl3lkfrma#faq","mainEntity":[{"@type":"Question","name":"When does Reddit officially join the S&P 500 and who is it replacing?","acceptedAnswer":{"@type":"Answer","text":"Reddit joins the S&P 500 on 18 August, taking the seat vacated by AvalonBay Communities, which is being absorbed into Equity Residential to form a company renamed Vivmark Residential that keeps its index spot. The change was announced by the index provider on 13 August. Reddit trades on the NYSE as RDDT and enters under the Communication Services sector. Track how index inclusions like Reddit's ripple through markets by following daily.dev's tech and business coverage."}},{"@type":"Question","name":"Why did Reddit stock rise 11% while still being down 31% for the year?","acceptedAnswer":{"@type":"Answer","text":"Shares jumped about 11% in extended trading after the S&P 500 inclusion announcement because passive index funds tracking the benchmark must buy the stock regardless of sentiment, closing at $158.12 beforehand. Despite this, Reddit remained down 31% year-to-date, reflecting investor concern over choppy search referral trends tied to Google's AI Overviews rather than the company's underlying business, which posted 61% revenue growth to $805m. Developers weighing how AI search changes affect referral-dependent products can follow this story on daily.dev."}},{"@type":"Question","name":"What is Reddit negotiating with Google over its AI data licensing deal?","acceptedAnswer":{"@type":"Answer","text":"Reddit is seeking to renegotiate its AI training data agreement with Google, originally signed in 2024 at roughly $60m a year, to shift from a flat fee to usage-based pricing. Google occupies three roles for Reddit simultaneously: it sends traffic, pays to license data for training, and runs the AI Overviews product that has been cutting into Reddit's search referral traffic. Anyone tracking how AI licensing deals reshape content platforms can follow developments like this on daily.dev."}}]} ```