Mid-August 2026 might prove to be one of the best buying opportunities ever presented to hopeful Reddit (NASDAQ: RDDT) stock investors.
Not only has the equity retraced more than 22% relative to the early July recovery, making it comparatively cheap, but it is set to benefit from a highly likely and predictable spike in upward pressure around Tuesday, August 18.
Specifically, early next week, RDDT shares are scheduled for inclusion in the benchmark S&P 500 stock market index, acknowledging that the ‘Front Page of the Internet’ has become one of the largest public companies in America and triggering automatic fund buying.
The equity started rising on the development already during the August 13 regular session – Reddit is up 3.04% to 158.12% on the day – and accelerated in the subsequent extended session. Indeed, RDDT stock is up 11.99% and at $177.08 in the Friday pre-market.
Why Reddit stock is likely to soar after August 18, 2026
Historically, inclusion in benchmark indices such as the S&P 500 generated significant price spikes for involved stocks, per a 2013 document published by a private nonprofit research organization called the National Bureau of Economic Research (NBER).
A relatively recent and high-profile example of the trend came in the form of Palantir (NASDAQ: PLTR). Specifically, PLTR stock’s inclusion in the S&P 500 was announced on September 6, 2024, and led to a 20% rally by September 23 of the same year.
Furthermore, Palantir shares are up 385% between September 23, 2024 – the actual day of the inclusion – and press time on August 14, 2026.
Why Reddit stock remains a risky buy ahead of August 18
Notably, however, the latest extended session move and the prominence of the PLTR stock example have raised the risks associated with purchasing Reddit’s equity ahead of the Tuesday inclusion.
Indeed, the overnight rally might lead to profit-taking behavior among investors, while the wider awareness of the likely impact of the event has the potential to rapidly turn RDDT overbought.
In the long run, involvement with the S&P 500 makes Reddit stock vulnerable to a market-wide danger identified by traders, analysts, and observers such as Robert Kiyosaki and Michael Burry, who state that once the so-called Baby Boomer generation grows sufficiently old to become net sellers, a sweeping crash spearheaded by index funds could take place.
Nonetheless, hopeful RDDT share buyers are unlikely to find a better opportunity to purchase the equity than ahead of August 18, 2026, within the foreseeable future.
Featured image via Shutterstock
