Retail investors seek to buy the dip on US megacaps -Vanda Research
Reuters
Published Oct 27, 2023 10:27AM ET
By Lewis Krauskopf
NEW YORK (Reuters) - Retail investors appear to be eager to buy up shares of the big U.S. tech and growth stocks that have been under pressure from mixed earnings results and rising bond yields, according to Vanda (NASDAQ:VNDA) Research.
Massive gains in megacap stocks, such as Apple (NASDAQ:AAPL), Nvdia and Microsoft (NASDAQ:MSFT), have helped drive equity indexes higher this year, but the group has faltered lately.
The latest weekly data from Vanda showed retail net buys of nine big tech and growth stocks reached 31% of total flows, after being below 30% for most of the month. The latest level is still below the 37% of flows the group reached earlier this year.
"Individual traders have scope to ramp up purchases in these names as a share of total flows; that could support the tech sector, as well as the overall market should it materialize," Vanda said in a note.
More specifically, retail traders appeared to gravitate toward those megacap stocks which sold off after their earnings reports, according to Vanda. That included buying in shares of Tesla (NASDAQ:TSLA), Alphabet (NASDAQ:GOOGL) and Meta Platforms (NASDAQ:META) -- which all fell following their respective reports -- and selling Microsoft, which rose after its earnings.
"Retail’s immediate reaction was clearly opportunistic as they net sold AI-leader MSFT to rotate into GOOG and META," Vanda said in a note. "Similarly, TSLA experienced contrarian buying last week."
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.