Some of the world’s most iconic brands like Tesla, Apple, Amazon, and Microsoft continue to be retail investors’ most favoured stocks – but many up-and-coming tech companies are joining the ranks, new data has revealed.
Social stock trading app eToro has revealed the top 10 stocks held by its 20 million global users in the June quarter of 2021, with nearly all of them tech-related companies.
And while Tesla took the top spot, racing up from sixth place this time last year, its Chinese rival Nio was close behind in second place.
According to eToro Australian market analyst Josh Gilbert, the top ranks of Tesla and Nio indicate investor confidence in the electric vehicle industry as a long-term investment opportunity.
“Tesla and Nio have both been the two most prominent stocks for Australian investors over the last six months,” said Gilbert.
“We can see that Australian investors are adapting to a long-term buy-and-hold strategy with both these assets, anticipating that the EV space will dominate the automotive industry for many years to come.”
And despite fears of inflation spooking global investors, leading many to turn away from growth stocks like tech companies and towards safer assets like bonds or gold, many of the companies on the top 10 list are tech stocks.
Household brands Apple and Amazon ranked third and fourth place, while video game retailer GameStop – which became a ‘meme’ stock in 2020 as an army of Reddit traders drove a surge to the company's stock price – was the app’s fifth most-held stock among global eToro users, demonstrating it may be more than just a passing fad among younger investors.
Data software company Palantir is at 6th place, followed by Chinese eCommerce giant Alibaba.
Cryptocurrency exchange platform Coinbase appeared for the first time in the top 10 at 8th place, and genome analysis company BioNano Genomics trailed at 9th place.
Tech giant Microsoft rounded out the top 10.
“The fact that Apple, Microsoft and Palantir also remain in the top 10 most held stocks on eToro also suggests that investors believe the recent bout of inflation may be temporary,” said Gilbert.
Global investors on the app are investing in companies they know and understand, he added.
Here are the most-held stocks among global eToro clients in Q2 2021:
Here are the most-held stocks among Australian eToro clients in Q2 2021: