Reddit stocks: what meme stocks are trending?

Top Reddit stocks to watch

Below is a list of the top 10 most mentioned US stocks on the WallStreetBets thread on Reddit over the last 24 hours on June 9, 2023, according to data from Quiver Quantitative. Exchange-Traded Funds (ETFs) and other instruments have been excluded. 

1. Tesla
2. Carvana
3. DocuSign
4. C3.ai
5. NVIDIA
6. Microvision
7. General Motors
8. Apple
9. Palantir
10. Adobe

US futures

• Dow Jones Industrial Average is down 0.2% and falling from a 5-week high
• S&P 500 is flat after hitting a 10-month high
• Nasdaq 100 is up 0.1% but remains below the 14-month highs hit earlier this week

Markets are in a cautious mood as they brace for a busy economic calendar next week. The Federal Reserve will be among a number of central banks due to make their latest interest rate decision next week. Markets remain confident that the Fed will leave rates alone, supported by the higher-than-expected jobless claims data that was released yesterday, pricing-in a 78% chance that rates will stay unchanged.

However, they are wary considering we have US CPI out the day before the meeting – which could be a deciding factor as to whether the Fed presses pause or opts for an eleventh consecutive rate hike. Markets want to see signs that inflation has cooled from the 4.9% year-on-year rise we saw in April. A lot of attention will be paid to core CPI, which has remained elevated and not decelerated as much as hoped. Any signs that inflation is not coming down will fuel expectations that further tightening is needed.

The larger rise in unemployment claims, which supported the view that the Fed’s existing actions are making an impact, supported US stock markets yesterday. That was significant for the S&P 500 considering the index closed at a 10-month high and technically escaped the bear market after closing at a level over 20% above the trough we saw last October. Although, it appears this new bull market is already being tested.

Top US stock news

Tesla is up over 6% and at its highest level in eight months. The stock will rise for an eleventh consecutive session if it can keep up the momentum, matching its longest-ever winning streak we saw back in January 2021. It is finding support today after announcing that General Motors has struck a deal to access its Supercharger network and adopt its charging connector. That follows on from a similar deal signed by Ford two weeks ago. The fact three of the largest electric vehicles maker in North America are standardising their charging systems cements Tesla’s connector as the industry standard and will bring millions of new potential customers into its network over the coming years. The deal is being applauded by markets, with General Motors up 4.3% and at three month highs. Ford is up 1.3% and at four month highs, having risen over 19% since signing its deal with Tesla on May 25. You can find out everything you need to know and view our latest technical analysis in Tesla Stock Pops as Automakers Join Charging Network.

Chinese electric vehicle maker NIO is down 1.7% after missing expectations in the latest quarter and said it will deliver far fewer vehicles in the current quarter than hoped. Revenue rose 7.7% from the year before to RMB10,676.5 million in the first quarter, coming in far short of the RMB11,679 million forecast. Its margin took a hammering too and its adjusted loss per ADS of $2.91 was much wider than the RMB2.64 forecast. NIO’s output has been declining since February, partly because it is refreshing its product lineup and transitioning to new models. But that means it will only deliver 23,000 to 25,000 vehicles in the current quarter – nowhere near the 47,600 pencilled-in by analysts. Chief financial officer Steven Feng said he remains ‘very confident’ NIO can double output in 2023 to around 250,000 vehicles. The big job going forward is showing its recently-released models can reinvigorate demand.

Electric vehicle startup Lordstown Motors is up 1.9% before the bell, but still languishing just above recent all-time lows, after it announced it will take legal action against its investor Foxconn. The Taiwanese firm, which is the largest technology manufacturer in the world that makes everything from iPhones and Kindles to games consoles, agreed to buy a stake of almost 10% in Lordstown but sent a letter last month that suggested it would not push ahead with the deal because of the impact on Lordstown’s recent reverse stock split. Lordstown is now taking action to ensure Foxconn follows through with its pledge.

Biogen shares have been halted ahead of a meeting that could influence the success of its proposed Alzheimer’s treatment. A panel that advises the US Food & Drug Administration are meeting today to discuss the drug named Leqembi, which has been developed in partnership with Eisai. They will decide whether it should be approved as a treatment for Alzheimer’s and then provide a recommendation to the FDA, which will make the final decision. Reports suggest that decision will be made by July 6.

Apple is trading marginally higher this morning. The company has lost ground this week after briefly hitting fresh all-time highs on Monday before swiftly reversing after revealing its new Vision Pro mixed-reality headset. KeyBanc said it believes iPhone sell-through trends were muted as expected and that iPhone sales were below historical season trends in May as consumers remain cost-conscious in the inflationary environment.

NVIDIA is up 1% today as it tries to climb back toward the fresh all-time highs we saw late last month, driven by the spike in appetite for artificial intelligence stocks this year. The Financial Times has reported that a feature in NVIDIA’s AI software can be manipulated into leaking private information based on research conducted by Robust Intelligence. The guardrails on the NeMo Framework that allows developers to work with a range of large-language models that power the likes of AI chatbots can be broken easily, with analysts able to overcome restrictions within a matter of hours. ‘The findings represent a cautionary tale about the pitfalls that exist,’ said Yaron Singer, the CEO of Robust Intelligence, which has since advised clients to avoid NVIDIA’s software.

Meta is down 0.8% after the company gave staff a preview of a wave of new artificial intelligence tools that it plans to introduce to its social media networks yesterday. Meta has not yet formally rolled-out any generative AI tools to its products but showed-off an array of them to staff, including a tool that allows users to edit photos using text prompts and new chatbots that will be added to Messenger and WhatsApp, according to unnamed sources speaking to Reuters. CEO Mark Zuckerberg told employees that AI will be built ‘into every single one of our products’.

Adobe is up 3.9% and at 14-month highs of $456.50 after being upgraded to Overweight by Wells Fargo, which raised its target price to $525 from $420. A slew of other brokers also upped their target price on the stock, including Citigroup to $462 from $365, TD Cowen to $500 from $415 and Mizuho to $450 from $375. That comes after Adobe rolled-out its artificial intelligence tool designed to generate images to large business customers, offering assurances that it will prevent copyright infringement claims. The test version of the platform, named Firefly, will be offered to corporate customers as part of Adobe Express and it has offered indemnification for images created using the service to try and address fears for any businesses using it. That suggests Adobe is confident as this could see it pay damages and provide legal assistance if any users are sued for using AI-generated images. Wells Fargo analyst Michael Turrin said it sees a less competitive landscape for Adobe in what is already proving to a be a fiercely competitive space. Most of the early value being assigned to AI is flowing into established platforms, Turrin said, but he sees potential for more stocks to breakout as more products are monetised.

C3.ai, another stock that has spiked higher in 2023 thanks to the hype around AI, is up 2.2% today. The stock has struggled since hitting 19-month highs last month, when its latest set of results caused some analyst to question whether it will be a major beneficiary from the interest in AI.

Palantir is up 3.2% and trying to climb higher toward the 18-month highs hit earlier this week. The RSI is still in deep overbought territory despite slipping from those highs, which were spurred-on by hopes it too can reap rewards from AI and a flurry of good news from contract wins to increased uptake of its Foundry platform.

DocuSign is up over 5% and at three month highs after smashing expectations in the latest quarter and posting a rosier outlook than anticipated. The company, which has been trying to restore confidence after losing the value gained when its e-signature software emerged as a winner during the pandemic, said revenue rose 12% from last year to $661.4 million and that adjusted EPS jumped 89% to $0.72 in the first quarter. That blew expectations for sales of $642 million and EPS of $0.55 out of the water. It also nudged up its full year sales and billings outlook and its guidance for the second quarter also impressed the markets. Multiple analysts said the guidance is still conservative, especially after the big beat in the first quarter, suggesting DocuSign could either deliver another a beat going forward or raise its outlook yet again.

Microvision is up 5.6% in premarket trade after closing at a 20-month high yesterday. The stock has risen more than seven-fold since the start of May, despite no obvious catalyst. Short interest was over 50% earlier this month, suggesting we could have seen a potential short-squeeze, especially as the latest data from Fintel shows this has since fallen closer to 27% to suggest some short sellers have been squeezed out. Trading volumes hit their highest level in over a year on Tuesday and Wednesday before dropping back down yesterday, suggesting the rally is running out of steam.

Cryptocurrency stocks remain under the spotlight as the regulatory crackdown in the US continues. The world’s largest exchange, Binance, has halted US dollar deposits and plans to halt dollar withdrawals after regulators sued the exchange and accused it of operating illegally. Things escalated when the SEC asked a federal court to freeze Binance’s assets in the US, which the exchange called ‘unwarranted’. Coinbase, which is down 1.3% today, has also been sued by the SEC this week, sending shockwaves through the industry. Bitcoin has lost some ground this week as a result but has held above $26,300. Other cryptocurrency stocks are on the move, with Riot Blockchain up 0.2%, MicroStrategy down 0.2% and Marathon Digital trading 0.9% higher.

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How to trade meme stocks

You can trade many of the hot stocks being discussed on Reddit with City Index. If you’re new to trading, then you can read our guide in What is a Meme Stock and Why are they so Popular?

Start trading Reddit stocks in just four steps:

1. Open a City Index account, or log-in if you’re already a customer.
2. Search for the stock you want in our award-winning trading platforms
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Reddit stocks FAQs

What are meme stocks on Reddit?

Meme stocks are the shares of companies that have gained popularity on social media – including on the Reddit discussion forum. These online communities are filled with retail traders and investors who have researched a particular stock, and then create a coordinated effort to influence the share price.

What happened to GameStop on Reddit?

In 2021, a community of retail traders coordinated a strategy on the r/WallStreetBets Reddit forum to buy shares and out-of-the-money options on GameStop. The idea was to create a short squeeze and force institutional investors and hedge funds who had shorted the stock to buy it back at a loss.

Ultimately the strategy worked, and GameStop’s valuation soared from $1 billion in 2020 to over $22 billion in 2021. This triggered large losses for the short sellers – totalling around $6 billion. The phenomenon was dubbed the ‘David vs Goliath’ of the stock market.

What are the risks of trading Reddit stocks?

The main risk of trading Reddit stocks is the volatility caused by the swings in social sentiment. For example, investors pushed the price of Bed, Bath and Beyond up 314% in the summer of 2022, but it crashed back down a few days later, causing huge losses for retail investors.

To manage the risk of trading meme stocks, you should always attach a stop loss to your positions.