On Friday, Reddit’s (RDDT +12.63%) shares made it to the major league. They were tapped to join the benchmark S&P 500 index, replacing current component stock AvalonBay Communities (AVB +0.08%). The switch will take place before the start of trading on Tuesday, Aug. 18.
Reddit’s stock understandably popped (by over 12%) on the news, not least because the company will become an instant candidate for inclusion in the portfolios of scores of index funds. As the company prepares to take its turn in the spotlight, here are three crucial factors investors should keep in mind about its business.
Image source: Getty Images.
1. It keeps posting blowout growth rates
Despite its age (its site went live in 2005), Reddit continues to grow its already considerable audience and its daunting mountain of user-generated content. That makes it more attractive and valuable to advertisers, of…
