Today, global multi-asset investment platform eToro reveals Australian retail investors piled predominantly into high growth industries such as electric vehicle stocks, cloud computing and recent Q3 IPOs in October.
Highlights:
-
Chinese automotive manufacturer Nio Inc. replaced competitor Tesla, as the most invested stock by Australian investors for October.
-
US-based cloud computing services provider, Fastly Inc. saw a 551 per cent increase from September.
-
Palantir increased in popularity among Australian investors, as a result of its IPO which occurred at the end of September.
|
Top 10 bought stocks by Australian investors on eToro in October 2020 |
|||
|
October rank |
Stock |
Monthly percentage change in trading activity |
September rank |
|
1 |
Nio Inc. |
35% |
3 |
|
2 |
Tesla |
-58% |
1 |
|
3 |
Apple |
-34% |
2 |
|
4 |
Amazon |
13% |
4 |
|
5 |
Fastly Inc. |
551% |
31 |
|
6 |
Advanced Micro Devices |
46% |
10 |
|
7 |
Microsoft |
-26% |
6 |
|
8 |
|
-21% |
7 |
|
9 |
Palantir Technologies |
857% |
70 |
|
10 |
Nvidia |
-50% |
5 |
Analyst commentary:
Josh Gilbert, market analyst at eToro, commented:
“Nio Inc. replaced Tesla as the most popular electric vehicle stock for Australian investors in October, with its shares skyrocketing over 40 per cent. The Chinese automotive manufacturer has had significant growth in 2020, with an increase of over 722 per cent from January 1st to October 30th. JPMorgan analysts upgraded the price target for the stock to $40 in the middle of October, which was close to double the price at the time of upgrade.
The company’s sales are also soaring, with its Q3 vehicle deliveries increased by 154 per cent from the same period last year. And this isn’t expected to stop any time soon, with recent guidance demonstrating that Nio Inc. is looking to continuously expand its production capacity after a recent increase of 11 per cent.
Tesla saw an enormous drop off in trading activity in October, as the world’s most valuable automakers growth began to stall. Tesla’s share price fell more than 13 per cent in October and trading activity was down by 58 per cent. This comes after a very positive earnings report, where Tesla saw its fifth straight quarter in profit, as well as exceeded expectations on revenue and EPS. The company delivered 139,300 vehicles in the third quarter of this year, which was a record number for the electric vehicle giant. Although trading activity slumped, it’s still clear that many investors are bullish on the stock, as it remained second on the list.
Fastly Inc. is a US-based cloud computing services provider, which came to market with an IPO last year. Since then, the shares for the company have climbed by almost 210 per cent. However, in October the stock finished down more than 35 per cent after initially surging 31 per cent at the start of the month. The drop in price is likely to be the reason as to why there has been such an impressive increase in trading activity, up 551 per cent from September. The fall in share price can be attributed to an uninspiring earnings report, as it missed expectations on revenues and EPS.
Palantir managed to squeeze its way into the top 10 stocks for October, after going public at the end of September. The software company that specialises in big data analytics was seen as attractive to investors thanks to its $9 share price and a good valuation, trading at just 14 times its projected revenue. With its share price rising more than 13 per cent in October, investors are clearly seeing Palantir as a long term player, especially with a recent price upgrade from Morgan Stanley analysts to $13 a share” concluded Mr Gilbert.
