Retail investors look to European stocks while continuing to back AI and weight loss drugs  

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 European firms Novo-Nordisk, Repsol and Rheinmetall all featured in the top 10 risers list

AI buzz continues to drive investors to market leaders Nvidia, Super Micro Computer and ARM

Mattel saw biggest QoQ drop in users (-21%) with Barbie Movie shine beginning to fade

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 (table 1), while also looking at the 10 most held stocks on the platform (table 2). We also looked at how Romanian investors modified their holdings (table 3) and which are the top 10 stocks owned by them (table 4).

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. For the Romanian investors Tesla, Nio, Apple and the Romanian born unicorn UiPath held firm their ground as the most held stock in this order. Microsoft gained one place increasing by 6% its number of holders but Nvidia jumped three places, ending in 6th place with a 21% increase in holders. The largest decreases in the top 10 were Meta Platforms (-7%) ending 10th and Amazon (-6%), ending in 6th place.

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 defence 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. Romanian investors are more focused on technology and US based stocks.

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. Romanian investors are also accumulating AI stocks, beside Nvidia we have seen a surge in Adobe (+19%) AMD (+13%), Intel and Taiwan Semiconductor Manufacturing Co. LTD (+10%).

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.

Romanian investors on the other hand are decreasing their Disney stocks holding (-19%) most likely marking some profits after the companyțs 6 month rally that has seen an over 50% increase in price. They also reduced their holdings in Palantir (-11%) and Airbnb (-10%), most likely for the same reason.

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 sizable 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.”

Table 1: Shows which stocks have seen the biggest proportional increase and decrease in holders on the eToro platform quarter on quarter

  Biggest risers among eToro’s investors around the globe Biggest fallers among eToro’s investors around the globe
Rank Company Increase in holders QoQ Company Decrease in holders QoQ
1 Super Micro Computer 290% Mattel Inc -21%
2 Palo Alto Networks 144% Liberty Media Corp -18%
3 MicroStrategy Incorporated 78% Net Lease Office Properties -18%
4 Repsol 68% Atlanta Braves Holdings -18%
5 Rheinmetall AG 61% Prosus -18%
6 Broadcom Inc 55% Corbus Pharmaceuticals Holding -17%
7 Fisker Inc 54% Phinia Inc -17%
8 ARM Holdings 52% Gaotu Techedu Inc. -17%
9 Novo Nordisk 50% Lithium Americas Argentina -16%
10 Eli Lilly & Co 48% Sandoz Group -15%

 

Table 2: Shows stocks most widely held by eToro users globally and their position last quarter

Company Ranking at end of Q1 Ranking at end of Q4
Tesla Motors 1 1
Amazon.com 2 2
Apple 3 3
NVIDIA Corporation 4 7
Nio 5 4
Microsoft 6 5
Meta 7 6
Alibaba 8 8
Alphabet 9 9
PayPal Holdings 10 10

 

Table 3: Shows which stocks have seen the biggest proportional increase and decrease in Romanian holders on the eToro platform quarter on quarter

 

  Biggest risers among eToro’s investors in Romania Biggest fallers among eToro’s investors in Romania
Rank Company Increase in holders QoQ Company Decrease in holders QoQ
1 NVIDIA Corporation 21% Walt Disney -14%
2 Adobe Systems Inc 19% Palantir Technologies Inc. -11%
3 AMC Entertainment Holdings Inc 16% Airbnb Inc -10%
4 Advanced Micro Devices Inc 13% CXApp Inc -10%
5 NIKE 12% Netflix, Inc. -9%
6 Intel 11% Coinbase Global Inc -9%
7 Taiwan Semiconductor Manufacturing Co Ltd – ADR 10% Volkswagen AG -9%
8 Tesla Motors, Inc. 10% Pinterest Inc -8%
9 Visa 7% Meta Platforms Inc -7%
10 Apple 7% Coca-Cola -7%

 

Table 4: Shows stocks most widely held by eToro Romanian users and their position last quarter

Company Ranking at end of Q1 Ranking at end of Q4
Tesla Motors, Inc. 1 1
Nio Inc.-ADR 2 2
Apple 3 3
UiPath Inc. 4 4
Microsoft 5 6
NVIDIA Corporation 6 9
Amazon.com Inc 7 5
Alphabet 8 7
Alibaba-ADR 9 10
Meta Platforms Inc 10 8

 

 

 

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