Polish investors remain faithful to technology companies

Polish individual investors remain loyal to the stocks of technology companies, despite the fact that this sector has been one of the most affected by recent market fluctuations. From the data eToro shows that 9 out of 10 companies owned by users at the end of the first quarter were from the technology sector.

Despite the threat posed by an increase in interest rates at the end of the first quarter, technology companies still dominate the list of the 10 most-bought shares in Poland. Tesla now holds the top spot, as it did for most of last year.

The only company in the top ten outside the tech sector, is GameStop - retail vendor of games, whose shares grew by over 40% in the last month. Last week, GameStop shares appreciated even more after the announcement of their split.

Ben Laidler, eToro Global Markets Strategist, commented:

Tech stocks were among the worst hit in 2022, with the Nasdaq being adjusted and a few big companies in significant red. There are many reasons for this. The war in Ukraine is obvious and it influenced the mood in all countries. But perhaps more important to the tech sector is the fact that major economies - and the US in particular - have started to raise interest rates for the first time in years.

High inflation and rising interest rates tend to hit technical stocks more than other sectors as they are valued on future earnings rather than current earnings. The problem is that with high inflation and rising interest rates, future earnings are worth less and theoretically make the sector less attractive.

Tesla number # 1

EToro's data shows the manufacturer of electric vehicles Tesla, just like a year ago, remains the most popular action on the platform. This means that investors see the sector's long-term potential. Between Q2021 2022 and Q21 XNUMX, the number of investors who own Tesla shares increased by XNUMX%.

Apple Lossless Audio CODEC (ALAC), (+25 percent quarter-on-quarter) moved to second place, and Amazon (+18% quarter-on-quarter), it maintained its third position, despite the fact that both companies' share prices fell by around 2%. since the beginning of the year.

Facebook's parent company, MetaPlatforms (+72% compared to the previous quarter), it moved up four places: it took the fourth position among the preferences of Polish investors on the eToro platform, despite the fact that its shares fell by over 33%. in the last three months.

Chinese manufacturer of electric vehicles Nio Inc. fell from second to fifth (+11 percent q / q).

Alibaba (+ 14 percent q / q), Microsoft (+37 percent q / q), manufacturer of integrated circuits NVIDIA (+ 37 percent q.q), company Google - Alphabet (+17% q / q) and GameStop (-5% q / q) completed the top ten.

Ben Laidler adds:

The increase in open positions in tech stocks during the tough trading period of Q2022 XNUMX suggests that investors are taking advantage of the current market volatility and looking for opportunities to buy stocks just after their fall in value to replenish long-term positions at a low price.

While the sector has been shaking recently, the fact that NASDAQ index, where technologies dominate, increased by more than 12 percent. as of mid-March indicates that the recent improvement may be short-lived. Of course, it is difficult to be sure that this will happen, given the unstable economic background. If the situation in Russia escalates, or if central banks raise interest rates faster than expected, all equities, including those in the tech sector, could be adversely affected. However, many investors clearly ignore short-term macro factors and invest in technology because of the long-term opportunities.

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