Reddit Stocks: What meme stocks are trending today? – August 31, 2023

Josh Warner
By :  ,  Market Analyst

US futures

  • Dow Jones Industrial Average is up 0.4%
  • S&P 500 is up 0.2%
  • Nasdaq 100 is flat


US futures are in positive territory today as the latest inflation numbers failed to throw-up any unwelcome surprises and jobs data showed the labour market continues to cool. Markets will be glad to see the back of August considering it was the worst month for the Nasdaq 100 of 2023 and the toughest month for the S&P 500 since February.


US inflation meets forecasts

We discovered this morning that the core PCE price index – the Federal Reserve’s preferred measure of inflation – rose 0.2% month-on-month in July, matching the previous reading of 0.2%. That was also in-line with the 0.2% forecast by economists.

The broader PCE price index was up 0.2% from the month before and also rose as expected, with the annual rise of 3.3% also meeting forecasts. The readings should keep hopes alive that inflation isn’t making a comeback as markets hope the Federal Reserve is nearing the end of its rate hikes.

Meanwhile, initial jobless claims rose 228,000 in the week to August 26, marking a dip from the previous reading of 230,000 the week before. That was less than the 235,000 increase pencilled-in by economists. That will further reinforce hopes that the labour market is cooling down and sets the tone ahead of the more closely-watched non-farm payrolls due out tomorrow.

The economic calendar for the rest of the day includes a speech from the president of the Federal Reserve of Boston Susan Collins and Chicago PMI figures.


Most discussed Reddit stocks

Below is a list of the top 10 most mentioned US stocks on the WallStreetBets thread on Reddit over the last 24 hours, according to data from Quiver Quantitative. Exchange-Traded Funds (ETFs) and other instruments have been excluded:

  3. Tesla
  4. AMC Entertainment
  5. Salesforce
  6. Rite Aid
  7. Apple
  8. Visa
  9. Tilray
  10. CrowdStrike


Most active US stocks before the bell

Below are the most active stocks with a valuation of at least $500 million before the bell, based on trading data taken from Bloomberg:

  1. Better Home & Finance
  2. Palantir
  3. Tilray
  4. Nikola
  5. Hawaiian Electric Industries
  6. Tesla
  7. AMC Entertainment
  8. Dollar General
  9. Microvast
  10. Chewy


US premarket winners and losers

Here are the stocks worth at least $500 million experiencing the sharpest movements in premarket trade, according to data from Bloomberg:





Altus Power


Dollar General


Better Home & Finance


CION Investment


Academy Sports & Outdoors


Livewire Group






UGI Corp


Five Below


Titan Machinery


Victoria's Secret


Hawaiian Electric


Verint Systems
















Top US stocks to watch

Let’s have a look at the top stocks to watch today.


Broadcom and VMware to report earnings

Broadcom and VMware are both trading higher ahead of results due out later today. Broadcom launched a $69 billion takeover of VMware in May 2022 and has been trying to clear the regulatory hurdles ever since. Broadcom is confident it will secure all the approvals needed by the end of October, but the pair recently extended the deadline to complete the deal to November 26. Broadcom is trying to make a big push into cloud computing and software by buying VMware.

The pair have made progress, but are still not home and dry. Regulators in the UK, European Union and a number of other countries including Canada, Brazil and Taiwan have all given the deal their approval, and Broadcom has said that the period for US regulators to challenge the deal has expired. However, it still needs some other approvals, most notably from China - where some analysts have flagged the risk of it being used as a pawn amid rising US-China tensions.

We expect investors and analysts to question progress on the deal this week, although it is unlikely much has changed since the update just a few days ago. Therefore, the primary job is to show both companies remain in the right gear to get markets excited about the prospects they will have if they manage to join forces.

With that in mind, Broadcom is forecast to report its slowest quarterly revenue and earnings growth in three years! Revenue is forecast to rise 4.8% to $8.86 billion while adjusted EPS is forecast to rise 7.4% to $10.45. The company makes chips that go into smartphones (it is a supplier for the Apple iPhone) and other devices, where demand has unwound after the boom we saw during the pandemic. Markets are hopeful that its arm that sells chips used in datacentres can reap rewards from increased demand for AI, although Wall Street is not anticipating any tangible boost in the immediate future. Keep an eye on guidance for the current quarter, with analysts looking for revenue of $9.29 billion and adjusted Ebitda of $5.89 billion.

VMware is forecast to report a 3.6% year-on-year rise in revenue in the second quarter to $3.45 billion, driven by its subscription services. Billings are expected to fall for the first time in a year, partly because of tougher comparatives, while remaining performance obligations could come in flat and spark woes about future growth. Adjusted EPS is seen climbing 4.4% to $1.71.


UBS stock hits 15-year high

UBS shares on the NYSE are up 4.4% after the Swiss bank outlined plans to cut 3,000 jobs and find $10 billion in cost savings as it reported its first set of results since completing its rescue of embattled peer Credit Suisse following the banking crisis earlier this year.

The jobs will be lost in Switzerland as UBS has committed to a “full integration” of Credit Suisse’s local arm. UBS is hoping to make those bumper cost-savings by the end of 2026 and has been improved from a previous goal of saving $8 billion by the end of 2027.

UBS revealed it made a bumper second-quarter profit of $29 billion, flattered by the massive gain from acquiring Credit Suisse for just CHF3 billion while adding much more in assets.

Markets have embraced the strategy considering UBS shares are at their highest level since May 2008! That suggests it has convinced the markets and gained their confidence, but that will also heighten for it to deliver over the coming years as it undertakes one of the biggest and most complex deals seen in the industry.


Salesforce delivers record earnings despite slowdown

Salesforce shares are up 6.5% and at their highest level in over a month at $228.90 after beating expectations in the latest quarter and providing a rosier outlook than anticipated, quelling fears about a slowdown as it reaps rewards from its cost-cutting efforts and higher prices.

The CRM giant said revenue rose 11% in the second quarter to $8.6 billion, coming in ahead of the $8.5 billion pencilled-in by analysts. It current remaining performance obligations – a barometer of future growth – also came in above guidance at 12% and defied analyst forecasts that sat closer to just 3%. Adjusted EPS of $2.12 marked a new quarterly record and smashed the $1.90 forecast as margins have significantly improved since Salesforce sharpened its focus on costs following pressure from an activist investor earlier this year.

Salesforce also Raised its revenue, margin and cashflow target for the full year and its outlook for the third quarter was also ahead of expectations, helping allay fears about slower growth.

Analysts largely welcomed the beat. JPMorgan said it will need to show a reacceleration in revenue growth if it wants to close the valuation gap against some of its larger peers, while Citi warned it is “not yet out of the woods”. Bloomberg Intelligence said it thinks any reacceleration will happen next year.

A string of brokers raised their target price on Salesforce this morning, including Goldman Sachs to $340, Barclays to $260, BofA Global Research to $280, Citigroup to $229, TD Cowen to $230 and Wedbush to $255.


CrowdStrike impresses despite a high bar

CrowdStrike is up 1.3% at $151.10 after performing better than expected in the second quarter, delivering record results that saw the cybersecurity stock hit its adjusted operating margin goal sooner than planned.

Revenue rose 37% from last year to $731.6 million and hit a new all-time record, while adjusted EPS of $0.74 blew past the $0.56 estimate and also set a new quarterly record. Its adjusted operating margin hit 21%, the first time it has hit CrowdStrike’s desired range.

Its outlook for the third quarter for sales of $775.4 million to $778.0 million and adjusted EPS of $0.74 was also welcome compared to the consensus that forecast sales of $774.5 million and EPS of $0.60.

Evercore ISI said CrowdStrike managed to impress despite the bar being quite high ahead of the results, while Guggenheim said it is showing signs of improving business momentum. However, Barclays and Morgan Stanley both remain unconvinced about annual recurring revenue growth in the second half. Among those to raise their target price on CrowdStrike today are DA Davidson to $185, JPMorgan to $170, RBC to $185, Guggenheim to $175 and Needham to $200.


Okta delivers beat and raise

Okta shares are up 11.5%, at its highest level in three months at $82, and on course to book their biggest daily gain since March after delivering a beat in the latest quarter and raising its outlook.

The software firm said it is now anticipating annual adjusted EPS of $1.17 to $1.20. That was a big lift from the previous goal of $0.88 to $0.93. Revenue rose 23% in the latest quarter to $556 million and came in ahead of the $534.5 million estimate, while adjusted EPS of $0.31 jumped from $0.22 the year before.

A number of brokers upped their price target on Okta today, including Wells Fargo to $95, DA Davidson to $80, Cannacord Genuity to $85, Bernstein to $88, Guggenheim to $100, Mizuho to $93 and BMO to $90.


Dollar General sinks on poorer profitability

Dollar General shares are down over 16% today – at its lowest level since 2019 - after lowering its full-year outlook this morning as footfall to its stores continues to fall and margins suffer from changing consumer habits.

The discount retailer said net sales were up 3.8% in the second quarter at $9.8 billion, although same-store sales were down 0.1%. Margins contracted as it focused on selling less-profitable essentials that consumers are still buying. EPS declined 28.5% from last year to $2.13.

Dollar General said it is now expecting same-store sales to be either up 1% or down 1% over the full year and is targeting annual EPS of $7.10 to $8.30, which would be down around 22% to 34% from what we saw in 2022. Previously, it had said EPS would fall just 0% to 8% this year.


Chewy’s outlook overshadows solid beat

Chewy shares are down 5.7% at $25.78, testing recent 1-year lows, after a solid beat in the latest quarter was overshadowed by a disappointing outlook.

The pet supply store said revenue rose 14.3% in the second quarter to $2.78 billion, beating the $2.76 billion forecast. Adjusted Ebitda grew to $86.9 million, which was welcomed considering analysts expected a year-on-year fall to around $70.6 million.

However, its outlook failed to impress. Third-quarter sales guidance came in below estimates and its full year goal of $11.15 billion to $11.35 billion was toward the low-end of the $11.31 billion forecast.

Evercore ISI downgraded the stock to In-line from Outperform this morning while other brokers cut their target price, including JPMorgan to $48, Barclays to $28, Needham to $45, Morgan Stanley to $31 and Citigroup to $30.


Chinese stocks fall on weak economic data

Chinese stocks like Alibaba, Pinduoduo, and Baidu are down 0.8% to 2.5% after the latest economic data out of China showed another contraction in manufacturing activity, adding to concerns about the state of the world’s second-largest economy as it tries to bounce back after abandoning its fight against Covid-19 this year.

Manufacturing activity has now contracted for five consecutive months. The latest services PMI also came in softer than anticipated, suggesting growth is slowing down. The country’s central bank is thought to have met with business leaders to discuss how they can increase access to funding, but it has still not been enough to convince markets that China is doing enough to stimulate the economy.


AMD and NVIDIA stock hit by new restrictions

AMD is down 0.2% while NVIDIA is up 0.2% and edging closer to recent all-time highs after the US government expanded its restriction on exports of advanced chips needed for artificial intelligence applications beyond China to include other countries, including in the Middle East.

They have already been forced to stop sending their most advanced chips to China amid a tit-for-tat over technology and trade, which prompted them to tinker with their chips so they could keep selling less-powerful versions in the country. A reason for the latest ban on exports of advanced chips to countries in the Middle East was not provided.

NVIDIA said the new rules will not have an “immediate material impact” on its financial results and said it is talking to government officials about trying to resolve the matter, while AMD issued a similar statement. Still, the development heightens risks that US semiconductor firms could be cut out of major markets as the US government tries to stymie AI developments in other countries.


Palantir falls on downgrade

Palantir shares are down 3.6% at $15.74 after Morgan Stanley downgraded the stock to Underweight after flagging an “unfavourable risk-reward” profile following its recent AI-induced rally. The stock has rallied over 15% in the last week alone.

The broker, which has a price target of just $9 on Palantir, said its valuation is now overly geared toward its AI prospects and said the “fundamentals remain mismatched”. It also said there is a risk that its business serving the US government and its allies may not be able to counter a deceleration in revenue growth.


Apple stock hits 4-week high

Apple shares are trading marginally higher today after climbing to a four-week high yesterday, driven by excitement around the upcoming launch of the new iPhone 15 in September that investors hope can revive demand for its most popular device.

Markets also seemed to embrace reports that Apple is testing 3D printers to make the chassis for some of its new smartwatches that could also be launched at the event pencilled-in for September 12. The report said this could speed up the manufacturing process and require less material, according to unnamed sources speaking to Bloomberg.


Microsoft to unbundle Teams from Office

Microsoft shares are trading slightly higher today after revealing it will unbundle its Teams service from its Office suite of products and allow more competitors to work within its ecosystem in an effort to win antitrust approval from EU regulators.

Regulators launched an investigation into the link between Teams and Office after Slack, now owned by Salesforce, filed a complaint back in 2020. Microsoft is making the changes in Europe and will see it offer its Office products without Teams at a cheaper price from the start of October.


Tesla under spotlight over range on EVs

Tesla shares are down 0.4% as the electric vehicle maker struggles to break above the 50-day moving average, with news that it is facing a number of regulatory probes tempering expectations following the rally we have seen over the past two weeks.

The Wall Street Journal said yesterday that Tesla is being investigated for a number of issues. One is regarding claims Tesla exaggerated the range of its electric vehicles following a report from Reuters back in July that said they were failing to meet the ranges advertised. Meanwhile, another is looking into Tesla’s purchase of construction materials in 2022 that was flagged as suspicious by company officials, fuelling rumours CEO Elon Musk was building a large glass house using company funds – a claim that was outright rejected by Musk on his social media platform X.


VinFast stock falling back from lofty levels

Vietnamese electric vehicle company VinFast, which went public earlier this month, is up around 6% today. The stock has lost ground for two consecutive days, wiping over $96 billion off its valuation. Still, the unjustified valuation, which still stands at about $95 billion, means it is still the fourth most valuable car company in the world despite still being in the red and only aiming to produce about 50,000 vehicles in 2023.

The stock has proven highly volatile, having seen its valuation hit as high as $191 billion at the start of the week before losing severe ground. VinFast has a tiny free float, which makes it vulnerable to sharp and volatile price movements.


Hawaiian Electric investigated over wildfires

Hawaiian Electric Industries is up 6.9% after US Republicans opened an investigation into the company’s role in the recent wildfires on the island that caused over $5.5 billion of damages and killed over 100 people.

The House Energy & Commerce committee chair Cathy McMorris Rodgers and other members have written a letter seeking more information on the sequence of events that led to the fire. The company has already defended itself against other accusations it was to blame.


Visa and Mastercard hit all-time highs

Visa and Mastercard are both up 0.6% this morning after both closed at all-time highs yesterday.

The payments giants got a boost after Visa said cross-border travel volumes in August in Asia and the US continued to improve compared to pre-pandemic levels. Global transactions were up 10% from last year. We also had reports that both Visa and Mastercard are planning to increase charges, which could see merchants pay over $500 million more in additional annual fees. Visa is thought to be preparing to hike charges in October while Mastercard isn’t expected to follow until April 2024, according to the Wall Street Journal.


Tilray rises on marijuana deregulation hopes

Tilray is up 2.3% and at a three-week high, following other cannabis stocks higher after reports surfaced yesterday claiming the US Department of Health has recommended easing restrictions on marijuana by moving it into a lower-risk category.

Marijuana is still illegal at the federal level despite over 40 US states having legalised the drug for either medicinal and/or recreational use. The move is seen as favourable as it would deregulate the drug by distinguishing it from harder drugs like heroin.

Other players like Canopy Growth and Cronos Group are up 5.5% and 2.7%, respectively.


AMC snaps 7-day losing streak

AMC Entertainment shares are up 6.7% and building on the gains we saw yesterday, when the cinema chain and meme stock favourite snapped a 7-day losing streak and rebounded from its lowest level since early 2021.

The RSI sank the deepest into oversold territory since the start of 2022 before recovering some ground, having slumped about 65% over the past 10 days alone, having been hammered amid a recent reverse stock split and the conversion of APE preferred shares into ordinary stock, which diluted AMC shareholders. That has seen its market cap plummet from over $38 billion on August 18 to less than $13.5 billion today.


Rite Aid hits all-time low on downgrade

Drugstore operator Rite Aid is down 1.2% and at all-time lows. The company had its credit rating downgraded to ‘CCC-‘ from ‘CCC+’ by S&P Global yesterday. The ratings agency said its large debt pile starts to mature in 2025, at a time when its prospects are deteriorating and facing legal problems regarding opioids.

“The downgrade reflects our view that a default, distressed exchange, or redemption appears increasingly likely within six months, barring unanticipated significantly favourable changes in the issuer’s circumstances,” S&P said. “We view the company’s capital structure as unsustainable due to its weak operating results and a potentially prolonged path to a sustainable recovery. Moreover, we think potentially significant settlement claims stemming from opioid lawsuits will likely heighten these risks”.


How to trade US stocks

You can trade US stocks and indices with City Index in just four easy steps:

  1. Open a City Index account, or log-in if you’re already a customer.
  2. Search for the stock or instrument you want in our award-winning platform
  3. Choose your position and size, and your stop and limit levels
  4. Place the trade

Or you can practice trading risk-free by signing up for our Demo Trading Account.


Open an account today

Experience award-winning platforms with fast and secure execution.

Web Trader platform

Our sophisticated web-based platform is packed with features.
Economic Calendar