Reddit posted net income of US$253 million on revenue of US$805 million, up 61 percent year over year.
Those results also fed investor unease about the company’s dependence on Google for traffic.
Steve Huffman, Reddit’s chief executive, told analysts that “search referrals were choppy,” CNBC reported, and attributed the volatility to Google’s expanding, Gemini-powered AI Overviews.
Analysts are treating the coming sessions as a flow event rather than a fundamentals story.
Stephens analyst Melissa Roberts said new S&P 500 additions have historically outperformed the benchmark between announcement and inclusion, with the biggest gains the day after the announcement, before typically giving back some of those gains and lagging the index by about 2 percent over the following three months.