Meet the Newest Stock in the S&P 500. It Soared 424% Since Its 2024 IPO, and It's a Buy Right Now, According to Wall Street

RDDT joined the S&P 500 this week, one of just 14 companies added to the index in 2026. The stock has surged 424% since its mid-2024 IPO, driven by aggressive user growth and advertising momentum.

Reddit reported second-quarter revenue of $805 million, up 61% year-over-year, and EPS growth of 178%. The company's human-generated content model positions it as a data source for AI training, a differentiator as tech giants increasingly rely on authentic user interactions.

Wall Street remains bullish: 21 of 33 analysts rate RDDT a buy, with an average price target of $215—implying 21% upside from current levels. The stock trades at 40 times trailing earnings but just 23 times forward earnings, reflecting expected margin expansion as the platform scales.

S&P 500 inclusion typically triggers automatic inflows from index funds, which could add near-term support. The 424% post-IPO rally has made RDDT one of 2024's top-performing debuts, though the valuation leaves little room for execution missteps.