Reddit stock is experiencing a significant uplift following its inclusion in a prominent index. Reddit shares were up around 14% in early trade following the announcement late yesterday by S&P Dow Jones Indices that the stock would join the S&P 500 prior to Tuesday’s opening bell. As fellow S&P 500 constituent Equity Residential completes its acquisition of AvalonBay, Reddit, a website where people congregate in communities to discuss nearly any topic, will take the place of AvalonBay Communities in the benchmark index.

After the transaction is completed, the combined company will be renamed Vivmark Residential and will continue to be included in the index. “We’re proud to be added to the S&P 500, recognizing the growth, momentum, and consistency we’ve established as a public company,” said Reddit CFO Drew Vollero said in a release. “Reddit’s raw materials are special, and there is so much potential to continue building great products and scaling profitably. Our focus remains on executing against the many opportunities ahead.”

Inclusion in a prominent index such as the S&P 500 typically results in an increase in a stock’s value, as index-tracking funds are obligated to acquire shares following a company’s addition. Reddit, facing significant pressure on its stock due to concerns regarding AI disruption and fluctuating web traffic trends, could benefit from some support; shares were down more than 30% as of Friday this year.