Polish investors keep their faith in big tech despite the sell-off

Polish individual investors seem to maintain faith in big tech stocks despite a 2022 sell-off wiping hundreds of billions of dollars from their market value, according to the latest quarterly stock data from the social investment network eToro.

• Tesla, Amazon & Apple are the three most popular stocks on the eToro platform;
• Xiaomi Corp climbs the Top 20 list, Warner Bros out of the ranking.

Big Tech Big Three

Top 20 most popular stocks on eToro platform among Polish investors at the end of 2022, were included Tesla, Apple Lossless Audio CODEC (ALAC), i Amazon. Compared to Q2022 XNUMX, changes in the entire statement were minor.

Within three months, one new entrant appeared on the top 20 list - the Chinese manufacturer of consumer electronics - Xiaomi. Meanwhile, the American film and entertainment studio Warner Bros. dropped out of the top XNUMX. tesla, Meta, Alibaba, Netflix, PayPal and Gamestop maintained their positions in this quarter.

Commenting, Paweł Majtkowski, Market Analyst at eToro said:

2022 has been an exceptionally weak year for investing, and for some traders, this will be the biggest bear market they have experienced. However, from our recent study Individual Investor Pulse* we know that the vast majority of individual investors have long-term time horizons, which makes them resistant to market cycles.

From what we can see, many individual investors have taken a 'wait and see' approach in 2022 rather than changing their investment approach. Top stocks are still dominated by big tech despite this year's sell-off, but when we look at these names - Apple, Microsoft, Meta, Alphabet - we're talking giants with stronghold balance sheets, structural growth prospects and now cheaper valuations that may have encouraged more buying. Certainly, these are companies that still deserve a place in a diversified portfolio.

Majtkowski adds:

The appearance of Xiaomi on the list is the result of the growing diversification among Polish investors. In 2023, geographic diversification is very important, especially since technology companies outside the US are currently much cheaper than their US counterparts. Investors also did not overlook the fact that Xiaomi, as a supplier of many cheaper solutions, can cope better during a recession.

It may come as a surprise to some that Netflix has moved up several places in the list. We are likely seeing a bottoming out result, with individual investors buying in during the summer months enjoying significant gains since then, company management navigating the cost of living crisis with new programs, ad-supported subscriptions, and a crackdown on password sharing.

All figures accurate as of the day after market close on Friday 30th December.

The data in the table shows the top 20 open positions held by traders on the eToro platform at the end of Q2022 2021 and at the end of QXNUMX XNUMX. Since the vast majority of stocks traded on eToro are real assets, this data does not include positions held as CFD. 

*eToro's Individual Investor Pulse is published quarterly and analyzes the sentiment of 10 individual investors worldwide.