Reddit set to join Russell indexes in June 2025

SAN FRANCISCO - Reddit, Inc. (NYSE: RDDT), known for its vast network of online communities, is slated to become a constituent of the Russell indexes, a move that will take effect at the close of business on June 27, 2025. The announcement follows the preliminary list of additions to the Russell indexes, which was published on May 23, 2025. The company, currently valued at $19.3 billion, has demonstrated impressive financial health with a 90.82% gross profit margin and robust revenue growth of 64.12% over the last twelve months, according to InvestingPro data.

The inclusion in the Russell 3000 Index, and by extension either the Russell 2000 or Russell 1000 Index, is determined by FTSE Russell based on market-capitalization rankings and style attributes. This event marks a significant milestone for Reddit, which has been publicly traded since March 2024 and is recognized as one of the most visited websites globally. The company maintains strong financial stability with a current ratio of 12.46, indicating excellent liquidity management. InvestingPro analysis reveals 18 additional key insights about Reddit’s financial position and growth prospects.

Steve Huffman, Co-Founder and CEO of Reddit, expressed the company’s enthusiasm about the inclusion, stating it as a testament to the platform built with its communities. He conveyed optimism for Reddit’s potential to join other leading indexes, highlighting the company’s strengths in its communities, content, and culture.

The Russell indexes, managed by global index provider FTSE Russell, are commonly utilized by investment managers and institutional investors for creating index funds and as benchmarks for various investment strategies. As of June 2024, approximately $10.6 trillion in assets were benchmarked against Russell US indexes.

FTSE Russell, a leader in global indexing, is responsible for thousands of indexes that span more than 70 countries and account for 98% of the investable market worldwide. These indexes serve as crucial tools for investors and are widely adopted for benchmarking investment performance and creating various financial products.

Reddit’s platform, which boasts over 100,000 active communities and 108+ million daily active unique visitors, has established itself as a significant source of information on the internet. The company’s inclusion in the Russell indexes is expected to enhance its visibility and credibility among institutional investors.

The information for this report is based on a press release statement.

In other recent news, PB Fintech Limited has set ambitious financial targets, aiming for a profitability goal of Rs10bn for the fiscal year 2027. The company expects a compound annual growth rate of 30% in new business and 35-40% in renewals, which it believes will boost its EBITDA margin in the core business to 40%, a significant increase from the 22% reported in the fourth quarter of fiscal 2025. Meanwhile, Reddit has been the focus of several analyst reports. Redburn-Atlantic reiterated its Sell rating on Reddit, expressing concerns over Google’s AI advancements impacting user engagement and revenue growth. BofA Securities maintained a Neutral rating, noting the launch of Reddit’s Dynamic Product Ads, which could enhance eCommerce advertising performance. Baird adjusted its price target for Reddit to $120, citing challenges in U.S. user growth, while Wells Fargo downgraded Reddit stock from Overweight to Equal Weight and reduced its price target to $115, pointing to potential permanent issues with the user base due to AI-driven search changes. These developments highlight the evolving landscape and strategic challenges faced by both PB Fintech and Reddit.

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