Major US technology and internet stocks have tumbled in recent sessions, pressured by some disappointing quarterly results. But that hasn’t deterred retail investors from scooping up beaten-down shares, according to Vanda Research.
(Bloomberg) — Major US technology and internet stocks have tumbled in recent sessions, pressured by some disappointing quarterly results. But that hasn’t deterred retail investors from scooping up beaten-down shares, according to Vanda Research.
The aggregate retail buying of Wall Street’s biggest stocks “broke all records” in the latest week, in what Marco Iachini, senior vice president, said was a function of both earnings and FOMO — or a fear of missing out.
The interest came despite a broadly negative set of results. While Apple Inc. rallied in the wake of its earnings release, companies like Microsoft Corp. and Alphabet Inc. both sank. Selling was even fiercer at Meta Platforms Inc., where the Facebook parent has sunk to multi-year lows, and at Amazon.com Inc., whose market valuation has dropped under $1 trillion for the first time since 2020.
Despite that, retail flows into Amazon registered a record high of $292 million last Friday, “and the pace of buying has remained above the company’s historical average this week,” Iachini wrote. “The selloff in mega caps was seen as a buy-the-dip opportunity rather than a capitulation moment.”
Amazon was the name with the highest retail purchases over the past week, per Vanda, followed by Meta, Apple, Tesla Inc., and Alphabet. Nvidia Corp. and Microsoft also ranked among the top 10.
The group largely fell on Wednesday, as investors looked ahead to an expected rate hike from the Federal Reserve. Apple, Microsoft, and Alphabet all dropped more than 1%, while Amazon and Meta slid more than 2%. The Nasdaq 100 Index fell 1.1%.
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
