Top stocks: Retail investors buy the dip in banks and ditch airlines,  benefiting from big tech loyalty

• Global users buy up Credit Suisse, BNP Paribas, BofA following recent bank share price falls, while airline loses appeal
• Tesla, Nio & UiPath remain the three most popular stocks held by Romanian investors on the eToro platform, with Coca Cola benefitting from the World Cup
• Airlines lose favor with Lufthansa, United Airlines amongst 10 most sold stocks in Q1 on a global level

 Retail investors bought the dip in banking shares whilst ditching airlines and autos in Q1, according to the latest quarterly stocks data from social trading and investing platform eToro.

Retail investors also benefited from their continued loyalty to big tech, with the sector staging a partial recovery in 2023.

eToro looked at which companies saw the biggest proportionate change in holders at the end of Q1 2023 versus the end of Q4 2022 (tables 1 and  2), while also looking at the 10 most widely held stocks on the platform (tables 3 & 4).

Globally, the most widely held stocks were led by Tesla, Amazon and Apple, all of which have seen significant share price improvements this year, with Tesla’s share price up 57% year-to-date. Others in this list include NVIDIA  (+85% share price ytd), Meta (+71% share price ytd), which along with Tesla, have been the three best performing stocks in the entire S&P 500 in 2022.

In Romania, the top three most-held stocks remained the same, with Tesla leading the list, followed by Nio. UiPath remained in third place, as Romanians remained loyal to the Bucharest-born unicorn despite its struggles on the financial markets since its 2021 listing on the New York Stock Exchange. Topping the list of biggest risers, we can find Coca-Cola (+10%) that was welcomed in the portfolios of Romanian investors, followed by Alphabet (+9%) and Microsoft (+ 9%.)

Amongst the 10 ‘biggest risers’ at a global level, several banks feature on the list, indicating that investors have been attempting to buy the dip following the recent turmoil in the banking sector. The number of global eToro users holding Credit Suisse stock is up 243%, whilst BNP Paribas SA (+38%) and Bank of America (+36%) also saw large increases. Several health-related stocks – a traditional defensive play – also made the list including CVS Health Corp (+64%) and UnitedHealth (+38%).

Commenting on the data, eToro’s Global Market Strategist Ben Laidler, said: “The banking sector has been in turmoil in recent weeks and share prices have been hit, but ultimately we see any lasting impact being limited to a few individual banks rather than the broader system. With this in mind, buying the recent dip in bank share prices may prove to be a good long term play. Even those who jumped into Credit Suisse may ultimately make good, as they now receive UBS shares in the takeover.

Bogdan Maioreanu, eToro market analyst for Romania “Retail investors have also been rewarded for their loyalty to some of the big tech titans this year, with share prices starting to recover across the sector and with interest in Alphabet and Microsoft being helped by their recent developments in the artificial intelligence space.These tech giants have huge profit margins and strong balance sheets and remain well placed to weather economic difficulties ahead with Romanian investors increasing their allocations.”

At the other end of the spectrum, globally airlines and car-makers featured prominently on the list of the 10 most sold stocks in Q1, with Rolls Royce (-13%), Porsche AG (-9%), Lufthansa (-8%),  Renault (-8%) and United Airlines (-7%) all seeing a drop in holders in the last three months. In Romania, the biggest fallers were NVIDIA (-7%), Meta (-7%), and Warner Bros Discovery (-6%).

Laidler adds: “The airline industry has made up some ground since it was battered by Covid but the recovery has been slow and inconsistent and some investors are possibly deciding that their money can work harder for them elsewhere. Car makers may also be losing their appeal as investors take heed from the wider consumer squeeze happening globally.”

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

Table 2: Shows which stocks have seen the biggest proportional increase and decrease in Romanian holders on the eToro platform quarter on quarter

Table 3: Shows which stocks are most widely held by eToro global users  and their position in the previous quarter

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