Retail investors are increasingly looking for opportunities in European stocks while holding firm on AI and weight loss drug leaders, according to the latest quarterly stocks data from trading and investing platform eToro.
eToro looked at which companies saw the biggest proportionate change in holders, quarter-on-quarter, while also looking at the 10 most held stocks on the platform.
Whilst the list of most held stocks was unchanged at the top, with Tesla, Amazon and Apple leading the pack, further down the rankings there was significant disruption thanks to Nvidia. The AI market leader climbed from 7th to 4th in Q1, as the firm’s share price continued its extraordinary ascent, now more than 230% up in the last year.
The data also shows how eToro’s users around the globe are seeing more potential in European stocks in 2024, ahead of a widely predicted market rotation away from US and tech and towards Europe and emerging markets. European firms on the list include weight loss drugmaker Novo-Nordisk, Spanish energy firm Repsol, and German defense stock Rheinmetall, with the latter seeing a massive 80% share price jump so far in 2024 as military spending grows due to the ongoing Ukraine-Russia conflict.
eToro users show no sign of letting up on AI-mania. AI-related stocks Super Micro Computer, ARM holdings and Palo Alto all made the biggest risers list for Q1, with the number of investors holding the stocks climbing 290%, 52% and 144% respectively. Also on the list was MicroStrategy Incorporated, with the software firm’s bitcoin-proxy credentials helping it to ride bitcoin’s 2024 rally.
Commenting on the data, eToro Global Market Strategist Ben Laidler said:
“Certain themes continue to dominate markets and this is well reflected in the activity of eToro users over the last three months. AI stocks are still attracting swathes of new investors, who are being rewarded by the technology’s rapid adoption and move from hype to revenues and profits reality. Weight loss drugmakers Eli Lily and Novo-Nordisk also retain their grip on retail investors, as demand for their products explodes.
“More notable is the growing appetite for European stocks on the eToro platform and we expect this trend to continue in 2024 as the focus shifts from the long-dominant US market to cheaper and more economically and interest rate sensitive European equities. Retail investors are clearly looking to get ahead of the game by adding positions.”
At the other end of the spectrum, eToro users appeared to lose patience with Chinese stocks, with Prosus (-18%), a major shareholder in Chinese tech firm Tencent, and Gaotu Techedu (-17%), both making the biggest fallers list. Another firm which saw a significant QoQ fall was Mattel (-21%), indicating that its Barbie movie shine is beginning to wear off. The stock’s share price is down 10% in the last six months. In some cases, eToro users also appeared to lock in profits, with Corbus Pharmaceuticals shedding 17% of holders after returning 513% year-to-date.
Laidler adds:
“Despite a long-awaited emerging markets rally forming in 2024, Chinese stocks are still lagging and it remains one of the worst performing regions in the world so it’s no surprise some investors are cutting their losses and reallocating. The stardust around Barbie-maker Mattel has also started to fade. The firm enjoyed a sizeable share price boost with the huge commercial success of the film last year but this momentum hasn’t continued and investors are responding. Investors have also been booking some gains, from oncology biotech Corbus and autoparts firm Phinia, after their stock surged.”
