Retail investors are increasingly looking for opportunities in European stocks, keeping the leaders of artificial intelligence and slimming drugs steady, according to the latest quarterly stock data from trading and investment platform eToro.
eToro looked at which companies saw the biggest proportional change in holders, quarter-on-quarter, and also looked at the 10 most-held stocks on the platform.
While the list of most-held stocks remained unchanged at the top, with Tesla, Amazon and Apple leading the way, further down the rankings there was a significant upset thanks to Nvidia. The artificial intelligence market leader climbed from 7th to 4th in Q1 as the company’s share price continued its stunning rise, now up more than 230% in the past year.
The data also shows how eToro users around the world see more potential in European equities in 2024, ahead of a widely predicted market shift away from the US and tech and towards Europe and emerging markets. European companies on the list include Novo-Nordisk, Spanish energy firm Repsol and German defense stock Rheinmetall, the latter of which has seen a massive 80% rise in its share price so far in 2024 as military spending rises due to the ongoing Ukraine -Russia. conflict.
eToro users show no sign of letting up on the AI craze. AI-related stocks Super Micro Computer, ARM holdings and Palo Alto made the list of the biggest gainers for Q1, with the number of investors holding the shares increasing by 290%, 52% and 144% respectively. Also on the list was MicroStrategy Incorporated, with the software company’s bitcoin-proxy credentials helping it lead bitcoin’s 2024 rally.
Commenting on the data, eToro Global Market Strategist Ben Laidler said:
“Certain themes continue to dominate the markets and this is well reflected in eToro user activity over the past three months. AI stocks continue to attract a flood of new investors, who are being rewarded by the rapid adoption of the technology and moving from hype to the reality of revenue and earnings. Weight-loss drug makers Eli Lily and Novo-Nordisk are also keeping a close eye on retail investors as demand for their products soars.
“Most notable is the growing appetite for European equities 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 trying to get ahead of the game by adding positions.”
At the other end of the spectrum, eToro users appeared to have lost patience with Chinese stocks, with Prosus (-18%), major shareholder of Chinese tech company Tencent, and Gaotu Techedu (-17%), and two are on the biggest falls list. . Another company that saw a significant decline QoQ was Mattel (-21%), indicating that the shine of the Barbie movie is starting to fade. The share price has fallen 10% over the past six months. In some cases, eToro users also appeared to profit, with Corbus Pharmaceuticals shedding 17% of holders after returning 513% year-to-date.
Laidler adds:
“Despite the much-anticipated emerging market rally in 2024, Chinese equities are still lagging and it remains one of the world’s worst-performing regions, so it’s no surprise that some investors are cutting their losses and reallocating. The stardust surrounding Barbie maker Mattel has also begun to fade. The company saw a significant boost to its share price with the movie’s massive commercial success last year, but that momentum hasn’t continued, and investors are responding. Investors have also held on to some gains from oncology biotech Corbus and auto parts company Phinia, after their stock rallied.
