Reddit Stocks: What meme stocks are trending today? – August 24, 2023

Josh Warner
By :  ,  Former Market Analyst

US futures

  • Dow Jones Industrial Average is down 0.2%
  • S&P 500 is up 0.4%
  • Nasdaq 100 is up 0.9%


US futures are largely on the rise today, led higher by tech stocks that are getting a boost from record results out from Wall Street’s favourite AI stock NVIDIA – scroll down for more information on the blowout earnings.


Durable goods orders

Durable goods orders fell 5.2% month-on-month in July, unravelling following the last reading that showed 4.7% growth. That was a sharper fall than the 4% decline forecast by economists.

Orders were up 0.5% when transport was excluded, which was ahead of the 0.2% forecast.


US initial jobless claims

US initial jobless claims rose by 230,000 in the week to August 19, easing from the rise of 239,000 we saw the previous week. That was a milder rise than the 240,000 increase forecast by economists.


Jackson Hole preview

We have the Jackson Hole symposium today but the headline event comes tomorrow, when markets will turn their attention to how Federal Reserve chair Jerome Powell feels about the fight against inflation, which has the potential to change the mood of the markets.

Economists expect him to leave all options on the table considering inflation remains above target and the economy remains resilient, particularly the jobs market. That could fuel a ‘higher for longer’ narrative. Markets have already been pushing back their expectations for the first rate cut in 2024 in recent weeks.

“With the Jackson Hole meeting and a key speech form Jerome Powell looming, we could be headed for a binary outcome for global markets which either supports a more hawkish Fed (higher USD, lower stocks) or less-hawkish-than-expected Fed (higher stocks, lower USD),” said our analyst Matt Simpson.


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. Advanced Micro Devices
  6. Apple
  7. Foot Locker
  8. Peloton
  9. Microsoft
  10. Snowflake


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:

  2. Nikola
  3. Palantir
  4. Tesla
  5. SoundHound AI
  6. AMC Entertainment
  7. AMD
  8. Apple
  9. Petco Health & Wellness
  10. Lucid Group


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:







Petco Health & Wellness




Movado Group




AMC Entertainment


Cassava Sciences


Spirit AeroSystems


Super Micro Computer


Hain Celestial Group








Dollar Tree




Vizio Holding


Evolv Technologies




Vertiv Holdings


NexTier Oilfield Solutions



Top US stocks to watch

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


NVIDIA stock: All-time highs thanks to AI

The best performer in the S&P 500 this year and Wall Street’s favourite stock of 2023, NVIDIA, is providing support to global tech stocks after clearing what was a very high bar when it released quarterly results last night. The chipmaker is up 6.7% before the bell and trading at fresh all-time highs before the bell today of $503

NVIDIA delivered record revenue, margins and earnings in the second quarter and its outlook was well ahead of forecasts thanks to the surge in demand for its AI chips, with NVIDIA currently the only shop in town selling the vital shovels at the start of what could be a new gold rush. It also launched a $25 billion share buyback, providing confidence that management think the stock is undervalued despite more than trebling in value this year.

You can find out everything you need to know about the results and what’s next for the chipmaker in NVIDIA Hits New Highs on Earnings Blowout.

Wall Street is about as bullish as it gets right now. JPMorgan, Wells Fargo Evercore ISI and TD Cowen all upped their view on NVIDIA to $600 this morning, while Bernstein made a larger hike to $675 from $475. Piper Sandler raised its view to $620 while Oppenheimer raised its target to $650. The highest target price is set by Rosenblatt and sits at a staggering $1,100. Even Morningstar, which was the only broker with a Sell rating on NVIDIA before the results, gave up and upgraded the stock to Hold, with it still holding a much more pessimistic view than others.

The average target price set by over 50 brokers covering NVIDIA has now moved to over $580 today from just $515 before the results, and has almost doubled from below $300 just three months ago!That suggests there is over 15.5% potential upside even despite the fact it is at fresh highs today, while the bulls with the biggest horns believe it could more than double in the next 12 months.



Tech stocks follow NVIDIA higher

NVIDIA is the best performing stock of 2023, which has made it one of the largest publicly-listed companies in the world, and the poster child for AI, which is now underpinning valuations across the tech space.

That means the blowout results are helping an array of other tech and AI stocks find higher ground today. This includes semiconductor rivals, led by a 1.5% to 7.8% jump in shares of AMD, Micron Technology and Super Micro Computer. The largest tech companies involved in AI right now, such as Microsoft and Alphabet, are also climbing. An array of smaller AI stocks that are popular with retailer traders are also on the rise. and Palantir are both up 3.3% while IonQ is trading 1.4% higher


Snowflake stock rises on earnings beat

Snowflake is up 3% at $160.35 after beating expectations in the latest quarter, although its outlook suggests it is still suffering from a slowdown as businesses become more cautious with their spending.

Revenue rose 36% to $674 million and came in ahead of the $662.8 million forecast in the latest quarter. Adjusted operating profit of $54.2 million blew past the $16.2 million forecast. While sales growth was strong, that was the slowest rise we have seen in two years! Plus, although its outlook for the third quarter was in-line with analyst expectations, it pointed to yet another quarter of slower growth.

Snowflake hasn’t yet seen a tangible boost from AI, although said it is positioned to benefit going forward. The company reiterated its full year outlook, but that does follow the downgrade we saw back in May. It appears it needs AI to provide a new catalyst to revive growth and get a re-rating.

Bernstein raised its target price on Snowflake to $160 from $148 this morning. Others lowered their targets, including Barclays to $183 and Piper Sandler to $205.


Autodesk stock jumps to 1-month high

Autodesk shares are up 6.7% at $218 and at a one-month high after beating expectations and impressing with its outlook. The company provides software that helps architects, builders, engineers and designers create 3D worlds.

Quarterly adjusted EPS of $1.91 came in comfortably above the $1.73 forecast and said it is targeting $1.97 to $2.03 in the third quarter, which was also ahead of the $1.92 pencilled-in by analysts.

A number of brokers raised their target price on Autodesk today, including RBC to $260, Berenberg to $228.50, Citigroup to $261, Stifel to $245, BMO to $232, Barclays to $233 and Rosenblatt to $253.


Splunk stock hits 1-year high

Splunk shares are up 13.8% at $113 and at a one-year high after delivering a beat and raise after benefiting from increased spending by businesses on AI and an increase in recurring revenue.

The software company’s quarterly adjusted EPS of $0.71 smashed the $0.45 predicted by Wall Street after revenue grew faster than anticipated to $910.6 million. Recurring revenue was up 16% from last year, giving it annual recurring sales of over $3.8 billion. It said it is targeting revenue of $1.02 billion to $1.05 billion in the current quarter, which impressed versus the $981.3 million pencilled-in by analysts.

Several brokers upped their view on Splunk today, including Wells Fargo and Baird to $135, Piper Sandler to $130, BTIG to $137, Barclays to $134, JPMorgan to $120 and Needham to $130.


Dollar Tree stock hit as margins shrink

Dollar Tree shares are down 6.5% and at its lowest level in almost three months after failing to inspire the markets with its outlook as consumers tighten their belts and inflationary pressures keep pushing up costs.

The discount retailer posted tighter margins as consumers shifted more spending toward less-profitable products, at a time when costs are soaring with expenses popping over 25% in the latest quarter. Energy and labour costs are the primary problem.

As a result, Dollar Tree warned it is now forecasting annual EPS of $5.78 to $6.08 over the full year, down from its previous range of $5.73 to $6.13.


Boeing hit by problems at Spirit AeroSystems

Boeing shares are down 2.5% after warning deliveries of its 737 MAX jets are being impacted by a new quality issue stemming from one of its biggest suppliers Spirit AeroSystems, which is down 7.5%.

Boeing is aiming to deliver 450 of the planes in 2023, but the news puts this at risk. The problem is with incorrectly shaped holes on some equipment made by Spirit. Fortunately, Boeing uses other suppliers for the same equipment, so not all production will be impacted. It could, however, provide new supply chain constraints.


Can Apple stock rise for a 5th session?

Apple shares are down 0.3% before the bell, having risen for four consecutive sessions since hitting a three-month low last week amid the sharp correction we have seen in August.

Attention is slowly turning away from its last set of results that showed iPhone sales succumb to weaker demand for smartphones and toward the upcoming launch of the new iPhone 15 sometime in September, with analysts bullish that the new model will encourage users to upgrade and continue to entice Android users to switch over.


Markets confident about Microsoft-Activision deal

Microsoft shares are up 1.8% while Activision Blizzard is down 0.1% at $91.63 as markets remain confident that their $69 billion merger will get the go-ahead from regulators.

Microsoft’s offer is worth $95 per Activision share. Activision has traded as high as $94 since the deal was announced but has fallen back slightly in recent months. Still, it remains close to the offer price and suggests markets remain fairly confident it can clear the regulatory hurdles. All eyes are on whether the UK’s Competition & Markets Authority, having blocked the deal, will have a change of heart after Microsoft offered remedies to ensure Activision games will remain available on other platforms.

The pair have had to extend the deadline date for the merger because of the lengthy regulatory process, and the current one ends on October 18. It could go down to the wire again as it may take some time for the CMA to make its final decision, which in turn could also prompt other regulators to review their decision to reflect the changes. The US Federal Trade Commission is still trying to block the deal, although analysts think its appeals have a low chance of success.


Has Tesla stock found new resistance?

Tesla shares are up 1.2%. The stock suffered a pullback yesterday amid reports it had lowered its production goal for its factory in Germany, injecting fears that demand is wavering despite a series of price cuts this year.

Interestingly, shares are testing the high we saw yesterday in premarket trade, suggesting this may be a point of resistance. We are now waiting to see if yesterday’s fall was a temporary blip or the start of another wave lower.


Short sellers stay away from VinFast’s crazy valuation

VinFast shares are down 6.6% this morning at $34.92. The Vietnamese automaker has exploded in value since going public after completing its merger with a SPAC last week and is currently the fourth most valuable automaker in the world – worth more than the likes of BYD, Mercedes-Benz, Volkswagen, Ford, General Motors and many more.

The company only started delivering its electric car in the US earlier this year and was forced to recall the first 1,000 vehicles it made earlier this year due to a software glitch.

While it boasts a lofty valuation, short sellers appear to be staying away. VinFast only has a small number of shares floated, meaning it is more prone to volatile movements and makes it a risky bet for traders. The company is still ultimately controlled by Pham Nhat Vuong, who is the wealthiest man in Vietnam.


Can Foot Locker stock recover from 13-year lows?

Foot Locker shares are down another 1.3% today at $16.42. The sneaker retailer sank yesterday after lowering its outlook for the rest of the year and pausing its dividend so it can ‘have the flexibility to continue to fund our strategic investments appropriately”. It closed down 28% and hit its lowest level since 2010!

The stock went as low as $16.60, but buyers were too tempted and showed a strong rejection at these levels to allow it to recoup some ground. The discussion now will be whether the sharp selloff is a buying opportunity or a warning that Foot Locker is in trouble.

Wall Street was downbeat about the results, but think it is now severely undervalued considering price targets imply there is huge upside potential from here. TD Cowen warned the dividend is unlikely to be restored as cashflow is under strain, a problem that could worsen when student loan repayments restart and limit the amount of discretionary spend of younger consumers. Jefferies warned inventory levels remain elevated and that it will need to use more promotional activity to shift it, which will hurt profitability. Citigroup was even more bearish and said the “health/sustainability of the business is now more in question”.

A wave of brokers lowered their target price on Foot Locker today, although they largely suggest the selloff has been overdone. This included Jefferies to $28, BTIG to $27, Barclays to $17, Evercore ISI to $40, Citigroup to $18, Tesley to $22, Guggenheim to $23 and BofA Global Research to $17.


Peloton stock at all-time lows

Peloton shares are down 0.7% today at $5.37. They crashed almost 23% yesterday and hit all-time lows of just $5 before finding some buyers to help it recoup some ground.

The selloff was prompted by fears it will take longer to escape the red than previously hoped. Losses were wider in the fourth quarter than hoped, and its outlook said it would book another loss in the current quarter – disappointing analysts that had predicted it would mark a turning point with a return to profit. Still, Peloton reiterated its ambitions to generate positive Ebitda and cashflow, as well as return to revenue growth, in the new financial year.

A string of brokers lowered their target price on the stock this morning, although they suggest the selloff may have been overdone, including Piper Sandler to $7.50, Evercore ISI to $7, JPMorgan to $12, Bernstein to $13, Telsey to $6, Barclays to $9 and BMO to $8. Needham downgraded the stock to Hold, while BofA Global Research cut it to Neutral and issued one of the lowest target prices at just $6.50.


AMC stock to undergo reverse stock split

AMC Entertainment shares are in play today after the company completed a 1-for-40 reverse stock split, which has reduced the number of shares in issue and therefore raised the price of each one. That means AMC shares are set to open at $17.50 compared to just $1.96 before the split.

That will help counter some of the impact from the plan to convert APE preferred shares into ordinary stock tomorrow. That will dilute existing shareholders and has prompted fears that their stakes could be watered-down further in the future if AMC issues more APE preferred shares to raise cash without shareholder approval and then converts them into AMC stock.

Wedbush amended its target price on AMC shares to $19 this morning to take the reverse stock split into account. The broker said it believes sales across North American box offices will rise about 20% this year compared to 2022, although remain below 80% of pre-pandemic levels as the industry finds itself among those taking the longest to recover.


Will Workday continue to see a slowdown?

Workday is up 1.1% ahead of quarterly results out after markets close today. Workday is a stock worth watching because it can provide an idea of how the wider corporate space is performing as it provides finance, HR and other management software that keeps businesses running. The results could also set the tone ahead of results out from CRM software giant Salesforce, which is up 1% today.

Workday is forecast to report a 15.4% rise in revenue in the second quarter to $1.77 billion, with subscription revenue estimated to rise 18% to $1.61 billion. That would mark the fifth consecutive quarter of slower growth. While Workday provides vital services for businesses, it is not immune to more disciplined IT budgets in the current environment. Adjusted EPS is forecast to grow 51% from last year to $1.26 thanks to improved margins.

Workday is among the wave of companies that have promised to infuse AI and machine learning across its suite of products and services.


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