On August 14, Reddit rose 12.57% overnight, trading at $178.02/share, with turnover of $122,300.

The rally was driven by the announcement that Reddit will be added to the S&P 500 index prior to the opening of trading on August 18, replacing AvalonBay Communities. The index change was triggered by Equity Residential's pending acquisition of AvalonBay, with the combined entity to be renamed Vivmark Residential and remain in the index post-merger.

The inclusion caps a strong period for Reddit, which reported Q2 earnings of $1.25 per share, beating analyst estimates of $0.95 by over 31%, while revenue of $805 million exceeded the $731 million consensus by 10%. Management guided Q3 revenue to $860-$870 million, well above the $828.4 million Street estimate. KeyBanc recently initiated coverage with an Overweight rating and a $225 price target, while analysts polled by FactSet assign a mean target of $230.06.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)