eToro: Investors shift portfolios towards European stocks
eToro: Investors shift portfolios towards European stocks
In its latest quarterly report, trading and investment platform eToro highlighted a shift in retail investor interest toward European stocks, with significant purchases made in companies whose stock prices had recently dropped. eToro's Q3 data analysis reveals that investors were particularly attracted to stocks in the European energy and financial sectors, as well as tech stocks like CrowdStrike and Intel, both of which saw notable declines.
The report showed the most significant increase in stockholders was seen in the Italian energy giant Eni, whose shareholder base grew by 80% over the quarter due to investor enthusiasm for European energy companies. Other key European players gaining substantial attention included TotalEnergies, whose stock increased by 48%, and Enel, up by 36%. Financial institutions also grew in popularity, with Spain's Santander bank and France's BNP Paribas seeing rises of 38% and 37%, respectively. The Italian aerospace and defense company Leonardo also recorded a 41% increase in stockholders, highlighting investor interest across various European sectors.
Among U.S. tech companies, CrowdStrike took center stage, ranking second in terms of increased stockholders, with a 64% jump. This rise occurred despite a significant drop in stock price following a July software update failure that affected thousands of users globally. The appeal of investing in the cybersecurity firm’s temporary price dip reflects confidence in its long-term growth potential within the cybersecurity market, despite recent reputational issues.
Intel also drew more attention, with stockholders increasing by 20% over Q3. The semiconductor giant, facing challenges in capitalizing on the artificial intelligence (AI) boom, saw a sharp price drop due to a disappointing earnings report and restructuring plans. Despite these setbacks, Intel remains a major player in the semiconductor sector, and investors appear to see its low prices as a buying opportunity.
Sam North, eToro’s Market Analyst, noted a clear trend of investors turning toward European stocks this quarter, especially after the European Central Bank’s rate cut in June and lackluster reports from some U.S. tech giants. “Retail investors are increasingly looking to European markets for better opportunities,” said North. He added that investor interest in CrowdStrike and Intel, despite recent setbacks, reflects confidence in these companies’ strategic roles in key sectors like cybersecurity and semiconductor production.
Regarding eToro's top stocks, tech giants still dominate the list, with Tesla, NVIDIA, and Amazon holding the top three spots. AMD, however, rose to the 10th position, overtaking PayPal. Meanwhile, tourism company TUI saw the largest decrease in stockholders this quarter, down by 96%, as investors cashed in on peak summer returns. This reflects a broader trend where investors quickly respond to sector-specific news and macroeconomic developments.
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