CEO Steve Huffman Once Said of Creating Reddit, I Just Didn't Want To Look Stupid In Front Of My Parents’ Now RDDT Stock is Joining the S&P 500 Index Sarah Holzmann Thu, August 13, 2026 at 2:57 PM PDT 2 min read RDDT ^GSPC AVB A hand holding a phone with the Reddit logo_ Mamun_Sheikh via Shutterstock_ During a Reddit AMA hosted 11 years ago, a user named GiveMeYourShekels asked newly anointed CEO Steve Huffman a couple of questions: Steve, I'm a huge fan and I'd like to ask what your thoughts are about reddit being a potential game changer in politics and pop culture. Do you believe that the reddit community has an ability to sway public opinion and policy? Did you intend this when you created reddit? More News from Barchart Mark Cuban Says If You Win The Lottery, Don't Take The Lump Sum And Tell People Who Ask for Money No, But 'Be Nice. No One Likes a Mean Billionaire' JPMorgan Just Upgraded Salesforce Stock. Here's Why. SpaceX Could Be Making $235 Billion From a Business It's Not Known For. SPCX Stock Investors Should Pay Attention. Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Posting under his username, spez, Huffman replied: Yes, we have an amazing opportunity to change the world. No, I just didn't want to look stupid in front of my parents. Today, after the market close, S&P Dow Jones Indices announced that Reddit (RDDT) will replace acquisition target AvalonBay Communities (AVB) in its benchmark S&P 500 Index ($SPX), with the change taking place effective prior to the opening of trading on Tuesday, Aug. 18. Right now, it seems safe to say that Huffman doesn't look stupid in front of his parents. How the News Affects Reddit Stock News of Reddit's impending inclusion in the S&P 500 represents a remarkable milestone for the social media company. This index addition validates Reddit's evolution from a college-era side project into a company that meets the stringent eligibility criteria for America's most closely watched equity benchmark. The S&P 500 inclusion is particularly noteworthy given Reddit's challenging stock performance in 2026. As of mid-August, RDDT was trading around $153.45 and had declined approximately 31% year to date, making it one of the weaker performers among digital advertising peers. The announcement triggered an 11% after-hours surge in RDDT shares. Index inclusion will mechanically drive significant passive fund buying, as the hundreds of billions of dollars benchmarked to the S&P 500 must now allocate capital to Reddit shares. This structural demand typically provides a durable floor for newly added stocks and can meaningfully improve liquidity. For a company that went public relatively recently, this forced buying from index funds represents a powerful endorsement of its market capitalization, profitability, and public float characteristics. Story Continues The Broader Context for Markets Right Now Reddit's entry into the S&P 500 arrives during a period of extraordinary strength for U.S. equities broadly. The benchmark...
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