Friday's Top Stock Performers: Reddit (RDDT), Applied Materials (AMAT), and Nu Holdings (NU) in Focus

Key Takeaways

Table of Contents

Reddit is set to enter the S&P 500 index on August 18, taking the place of AvalonBay Communities
Applied Materials declined approximately 5% even after surpassing earnings and revenue projections
Sandisk climbed more than 4% following J.P. Morgan’s Overweight rating resumption
Nu Holdings rallied 9% on the back of impressive 56% year-over-year revenue expansion
Globant plummeted 13% after falling short of earnings expectations and reducing revenue forecasts

The headline-grabbing development on Friday, August 14 was Reddit’s confirmation as a new S&P 500 constituent. The popular social platform will make its official debut in the prestigious index when markets open on August 18.

Reddit, Inc., RDDT

AvalonBay Communities will exit the S&P 500 to make room for Reddit, as it’s being purchased by Equity Residential. The merged entity will maintain its position in the index operating under the Vivmark Residential brand.

Reddit shares rocketed 12% higher following the announcement. Index inclusion typically generates substantial buying pressure from passive funds that mirror the S&P 500’s composition.

Applied Materials Slides on Profit-Taking

Applied Materials delivered impressive third-quarter financial results, yet shares tumbled roughly 5%. The semiconductor equipment maker posted revenue of $9.12 billion, representing 25% year-over-year growth and exceeding analyst expectations of $9.02 billion.

The company’s adjusted earnings per share reached $3.50, surpassing the Street’s forecast of $3.42. Fourth-quarter guidance also came in ahead of projections, with management targeting a revenue midpoint of $10.25 billion compared to consensus estimates of $9.55 billion.

Company executives increased their semiconductor systems revenue projections for 2026, citing robust AI-related demand and improved forward visibility through 2027.

Nevertheless, the stock faced selling pressure. With shares already up nearly 98% for the year, some market participants likely anticipated an even stronger performance. Additionally, the company reported a $220 million unrealized loss on investments during the period.

Sandisk advanced more than 4% in early trading after J.P. Morgan reinstated coverage with an Overweight recommendation and established a $2,250 price objective.

Nu Holdings Delivers Impressive Results

Nu Holdings, Brazil’s leading digital banking platform, soared 9% following exceptional second-quarter performance. The fintech company generated revenue of $5.88 billion, representing 56% year-over-year growth and handily beating the $5.48 billion consensus forecast.

GAAP earnings per share reached $0.22, exceeding analyst estimates of $0.19. Net interest income surged 65% compared to the prior year, reaching $3.69 billion.

The company attracted 4 million new customers throughout the quarter, expanding its customer base to 139 million total users. Monthly average revenue per active customer climbed to $17.10, up from $12.50 in the year-ago period.

Globant experienced significant weakness, falling 13% after the technology services provider posted adjusted earnings below forecasts and issued cautious guidance about ongoing revenue growth challenges.

The company’s updated full-year 2026 revenue outlook of $2.428 billion to $2.462 billion implies potential performance ranging from a 1.1% decline to modest 0.3% growth.

Multiple artificial intelligence-focused equities gained ground. Intel, Marvell, and Micron each posted premarket advances ranging from 1% to 2%.

Defense sector and drone manufacturers also rallied after the Trump administration unveiled tariffs targeting drone imports. Unusual Machines, Ondas, Kratos, and AeroVironment all registered gains.

Equity index futures showed minimal movement as market participants digested encouraging inflation trends following Thursday’s softer-than-anticipated wholesale price data.

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