Investors in Australia and around the world are pouring money into Meta Platforms, with the social media company climbing in popularity in the last quarter of 2021.
New data from investment platform eToro reveals the list of the top 10 most held stocks by global and Australian investors, and Meta Platforms - formerly known as Facebook - jumped several ranks among both groups of investors.
“Meta Platforms’ growing popularity with investors might be slightly surprising considering it lagged the market in the fourth quarter, however, there are a number of reasons why more DIY investors are holding the stock,” eToro global markets strategist Ben Laidler said.
“Firstly, at 23 times 2022 consensus earnings, it is the cheapest of all the major US tech stocks, with a valuation nearly in line with the overall S&P 500, looking at price-to-earnings.
“Secondly, the firm has ditched the Facebook moniker and hitched its wagon to the fledgling metaverse sector, which is starting to cause real excitement among many investors.”
Among Australian eToro investors, Meta climbed from 11th place in the third quarter of 2021 to sixth in the fourth quarter. A similar shift occurred among global investors which saw Meta jump from 13th to 6th.
“The metaverse is a huge growth opportunity and the fact Meta has thrown its brand and resources behind it will be a big catalyst for its development,” Laidler said.
“And while it is not the only company exploring this area, it will no doubt be one of the major players.”
Globally, Tesla and Chinese rival Nio dominated, with both retaining their respective first and second positions across the second half of 2021.
They were followed by Amazon, Apple and Alibaba.
Among Australian investors, Tesla was also the most popular stock, followed by Apple, Nio and GameStop.
“What’s interesting from Australian investors is that they continue to approach investing with a long-term mindset,” eToro’s Australian market analyst Josh Gilbert said.
“Stocks such as Tesla and Nio are companies they believe will thrive over the next decade. Investors are not getting caught up in short-term price movements, but instead looking ahead and focusing on future growth.
“With Apple featuring second on the list, it also demonstrates to us that Australian investors are confident in the growth of Big Tech moving forward. Australian eToro investors are choosing to invest in stocks that they know, love and use in their everyday lives. Apple, Amazon, Meta and Alphabet are clear examples of this.”