Aussie Investors Are Adding Tech Giants To Their Portfolio

Highlights:

• Electric vehicle giant Tesla continued its dominance as the most invested stock by Australian investors for September – for the second month in a row
• Nvidia’s trading volume increased by 81%, off the back of its pending acquisition of Chip Designer Arm Holdings, from SoftBank for $40 billion
• Zoom shares jumped higher at the end of September, as increased COVID-19 cases and looming lockdowns continue across Europe

Top 10 bought stocks by Australian investors on eToro in September 2020

Source: eToro, September 2020

Josh Gilbert, analyst at eToro commented:

Tesla continued its dominance as the most invested stock by Australian investors in September. The electric vehicle giant had a volatile month, with its share price falling as much as 30% at the start of the month before finishing down around 9%. With a 98% increase in trading activity, it’s clear that many investors saw this recent dip from Tesla as an opportunity to get their hands on this stock at an attractive price. At the end of September, Tesla disappointed investors with its battery day. The event was heavily hyped by Elon Musk, with many analysts raising price targets for the stock as a result. However, many of the promises made by Musk were a long way off and may require a lot of work.

Apple saw a 58% increase in trading activity in September, taking the spotlight from Nio Inc. In mid-September Apple announced a host of new product launches, with many investors disappointed that the iPhone 12 wasn’t amongst the lineup. This time of year is very strong for Apple, with the holiday season just around the corner and a 13% drop in September. Many investors have clearly seen this as a great opportunity to purchase Apple shares.

Nio Inc’s trading numbers fell in September compared to August. Like Tesla, Nio Inc sold off at the start of September, losing around 15%. With increased tensions between the US and China, including the ‘bans’ looming on Chinese apps, many investors felt anxious with any stocks exposed to China or Chinese stocks listed in the US. As Nio Inc is a speculative stock compared to Tesla and has only been listed since 2018, many investors are more likely to be cautious about buying its stocks when it dips compared to big names like Apple and Tesla.

Nvidia’s trading numbers increased by 81% in September, likely to be caused by its pending acquisition of Chip Designer Arm Holdings from SoftBank for $40 billion. Arm creates chips that are used in phones and are set to benefit from Apple shifting its computers from Intel Chips to that of Arm’s design. This could be a massive coup for Nvidia, as it will also allow them to grow in the AI space. Even with this M&A news, Nvidia couldn’t avoid the Nasdaq sell-off as it finished down 2% for the month.

Zoom continued to outperform the market in September, climbing around 3% as most of the tech sector sold off, taking Zoom’s YTD gain to around 584%. In early September, Zoom announced another blockbuster earnings report, with revenues increasing by 355% year-over-year. Zoom shares then jumped higher at the end of September as increased COVID-19 cases and looming lockdowns continue across Europe. With a huge increase of 254% in trading numbers throughout September, we can clearly see that investors believe Zoom still has a huge part to play in the remote workspace over the next few months. As Zoom’s earnings reports have been historic over the last two quarters, it will be important to see whether they can sustain this growth going forward” concluded Mr Gilbert.