5 New Contenders for S&P 500 Index

3. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 82

Reddit, Inc. (NYSE:RDDT) is one of the 10 new contenders for S&P 500 Index.

On April 21, 2026, DA Davidson initiated coverage of Reddit, Inc. (NYSE:RDDT) with a Buy rating and a $200 price target. The firm cited a belief that the company remains incredibly under-monetized relative to peers. DA Davidson estimates that the “human-first social platform” Reddit, Inc. (NYSE:RDDT) will attract more users and advertisers as it scales. And with this growth, the company is expected to secure favorable LLM contract renewals and an increase in operating leverage, which will strengthen its position in the digital advertising market. Notably, in an article published earlier this year, CNBC noted that the odds of Reddit, Inc. (NYSE:RDDT) entering the S&P 500 index are high, as communication services and financials remain underweight in the index.

Meanwhile, the company saw a significant cut in its price target from Citizens on April 21, 2026. The firm lowered Reddit, Inc. (NYSE:RDDT)’s target price from $300 to $250 while keeping an Outperform rating on the stock. With a consensus Buy rating from 33 analysts, the company holds a 61.81% 1-year average upside, as of April 24, 2026, according to CNN.

Reddit, Inc. (NYSE:RDDT), founded in 2005, is a social news aggregation and discussion platform powered by a network of communities called subreddits. The company operates globally with headquarters in California.