Online broker eToro has just released the data on the most widely held stocks in the fourth quarter of 2023.
Retail investors continued to support weight-loss drug makers in the fourth quarter, while locking in profits from some of the biggest cash cows of 2023, according to eToro’s latest quarterly stock data.
eToro looked at which companies saw the largest proportional change in holders at the end of the fourth quarter compared to the end of the third quarter, while also looking at the 10 most-held stocks on the platform.
The list of most widely traded stocks was once again led by Tesla and Amazon, both of which saw huge share price gains in 2023. After a stunning 12 months in which its share price jumped 239%, the largest in the S&P 500, Nvidia has now cemented its position as the seventh most traded stock on the eToro platform, ahead of tech giant Alphabet.
Weight loss drug makers once again featured prominently on the list of the top 10 “lifters.” Danish company Novo-Nordisk, maker of weight loss drug Wegovy, and Eli Lilly & Co, maker of Tirzepatide, saw the number of eToro users holding the shares rise by 42% and 33% respectively in the fourth quarter. Both companies posted 9-11% gains in share price in the final quarter of last year, although at more modest levels than the gains seen earlier in the year.
Retail investors also appeared to buy the dip in the fourth quarter, with several underperforming companies appearing on the list of top gainers. For example, German pharmaceutical giant Bayer saw a 36% increase in eToro holders after the company’s share price hit a 12-year low. Meanwhile, Siemens Energy saw a 17% jump in eToro users holding the stock after the company’s share price hit a record low in October.
Ben Laidler, global market strategist at eToro, said:
“Retail investors clearly feel the obesity drug train has a long way to go, with eToro users continuing to flock to the industry’s two biggest names in the fourth quarter. While some of these investors may feel they are late to the party, the share price returns of 9% and 11% in three months certainly shouldn’t be ignored. We’ve also seen bargain hunters snap up companies that have struggled of late – not a bad strategy considering the recovery some of the 2022 delays had last year.”
At the other end of the spectrum, eToro users appeared to be locking in their profits on some of the best players of 2023 by selling. Among the top decliners on the list was Salesforce, which dropped 12% among eToro holders in the fourth quarter. Uber and Micron Technologies also fell, losing 12% and 11% of holders respectively. All three of these companies saw impressive share price gains in 2023.
Laidler adds:
“At the end of a calendar year, retail investors will typically assess their portfolio and consider whether any repositioning is necessary for the year ahead. Based on what we’ve seen, it’s clear that it’s also a time when many are deciding to cash in on some of their strong performers, with several big tech names with outstanding share price gains in 2023 seeing a reduction in holdings on the eToro platform at the end of 2023. This may prove prudent if predictions around the market turning to cheaper and more economically cyclical stocks prove accurate.”