Individual investors are turning to European shares

Individual investors are increasingly looking for opportunities on European stock exchanges, while holding tight to the leaders in the field artificial intelligence i slimming drugs, according to the latest quarterly stock market data of the investment and trading platform eToro.

In a nutshell:

• European Novo-Nordisk, Repsol and Rheinmetall are among the companies gaining popularity among investors,
• The popularity of the topic of artificial intelligence continues to attract investors to market leaders - Nvidia, Super Micro Computer and ARM,
• Mattel recorded the largest quarterly decline in the number of investors (-21%) - it is clear that the effect of the "Barbie" movie is starting to weaken.

European shares are gaining ground

eToro analyzed which companies saw the greatest proportional change in the popularity of their shares quarter over quarter (Table 1), as well as the 10 most frequently held stocks on the platform (Table 2).

While the top of the list of most-owned stocks remained unchanged, with Tesla, Amazon and Apple at the top, a lot has changed further down the list thanks to NVIDIA. The artificial intelligence market leader climbed from 7th to 4th place in the first quarter as the company's share price continued its unprecedented gains, now up more than 230%. over the last year.

The data also shows that global eToro users see greater potential in European shares in 2024, on the eve of a widely expected market rotation away from the US and technology companies towards Europe and emerging markets. European companies on the list include weight loss drug maker Novo-Nordisk, Spanish energy company Repsol and German defense giant Rheinmetall, the latter of which has seen a very high 2024% share price increase in 80 on the back of an increase in military spending as a result of as military spending increases due to the ongoing Ukraine-Russia conflict.

However, eToro users show no signs of giving up on the AI ​​mania. Artificial intelligence stocks Super Micro Computer, ARM Holdings and Palo Alto were among the top gainers in the first quarter, with the number of investors holding these stocks increasing by 290%, 52% and 144%, respectively. and XNUMX percent MicroStrategy Incorporated was also on the list.

Commenting on the data, eToro analyst Paweł Majtkowski said:

Certain themes continue to dominate the markets and this is well reflected in eToro user activity over the last quarter. Shares of companies based on artificial intelligence continue to attract many new investors who are rewarded with profits due to the rapid implementation of its practical applications. AI it's not only hype, but also big real profits. What we can see is that Polish investors also remain big fans of AI. Weight loss drug makers Eli Lily and Novo-Nordisk also maintain high popularity thanks to the explosion in demand for their products.

While Polish investors on the eToro platform mostly focus on the American market, globally we see an increase in demand for European shares and we expect this trend to continue in 2024. The attention of global investors is shifting to cheaper and more sensitive to the economic situation and interest rates shares. European. Individual investors clearly do not want to miss out on the upcoming rotation and are adding these companies to their portfolios.

At the other end of the investing spectrum, eToro users appeared to be losing patience with Chinese stocks, with Prosus (-18%), a major shareholder of Chinese tech company Tencent, and Gaotu Techedu (-17%), among the biggest decliners. Another company that recorded a significant quarterly decline was Mattel (-21%), which indicates that the effect caused by the great success of the movie "Barbie" is weakening. The company's share price dropped by 10%. in the last six months. In some cases, eToro users decided to take their profits - Corbus Pharmaceuticals lost 17%. holders after an increase of 513%. since the beginning of the year.

Paweł Majtkowski adds: Despite the long-awaited rally on emerging markets in 2024, Chinese shares continue to show weakness, which is why some investors are limiting their losses and relocating assets. The "Barbiemania" that fueled Mattel's stock also began to fade. The company enjoyed a significant share price boost thanks to the film's huge commercial success last year, but that momentum did not continue, prompting a backlash from investors.

Table 1: Stocks had the largest proportional growth and decline in holders on eToro quarter over quarter.

Table 2: Stocks most frequently held by global eToro users and their position in the last two quarters