The last 12 months has seen the rise and rise of technology related stocks particularly on the US market. No prudent investor wouldn’t have noticed the eye watering rise in the tech heavy NASDAQ index peaking in Jan 2021. After doing a 1 year history analysis of the top 10 traded stocks on the POEMS trading platform, it doesn’t come as a surprise to see the majority of stocks are tech related.
A chart showing the top traded stocks. The top traded stock achieved a 10 rating for each month while the least was graded at 1 – 120 being a perfect score.
It’s no surprise that Tesla, the electric vehicle manufacturer, topped the list as the most popular stock traded on the PhillipCapital POEMS platform over the last 12 months. Tesla ranked as the top traded company for 9 out of the 12 months and only then did it drop to 2nd rank giving it an almost perfect score of 117.
With the share price having run up some 530% from May 20 to its peak in Jan 21 its been a market darling and has certainly captured the attention of the investing public. Moreover, its outspoken CEO Elon Musk is never far from news headlines and has no doubt single-handedly sent the profile of the company through the stratosphere.
With its burgeoning market capitalisation, it became apparent in late 2020 that Tesla would be included in the SP500 index. This created another round of buying frenzy as large index funds would need to buy the shares as part of their index tracking portfolios.
The share price has since cooled from its Jan 21 highs with investors digesting earnings results and no doubt some profit taking has occurred.
Dubbed the Chinese Tesla, NIO ranks second in the top 10 traded stocks.
Following a similar price pattern to Tesla, NIO topped out in Jan 21 and has provided plenty of volatility for the active trader over the last 12 months.
The company has started its global roll out and expansion outside of China underscoring its ambition to become a global player with its recent announcement of a Norway launch with its hub in Oslo, Norway.
Alibaba ranked consistently in the top 10 traded US stocks over the last 12 months with interest only dropping into 2021 as investors enthusiasm waned after the axing of its highly anticipated ANT Group IPO in November 2020.
The IPO of its fintech arm was supposed to have been the largest in history. However it was upended by increased antitrust scrutiny of online platforms and China’s crackdown on digital banking practices. Investors became concerned about the regulatory impact on the future of the Alibaba Group and its share price declined 9% in November.
Since then, the stock hasn’t recovered and slowly dropped back to near 12 months lows.
The payments technology company was a familiar face in the top 10 over the last 12 months. Fintech companies have been on the rise over the last few years and Square has been front and centre in regards to offering cutting edge payment tech for merchants and also peer to peer.
On top of a thriving ecosystem built around its Seller and Cash App platforms, Square recently secured an industrial banking charter. This means it can scale up its financial services and offer lending services to customers. This development, along with its successful ecosystems which include cryptocurrency, presents long-term growth prospects.
All this has kept investors and traders active in the stock on the PhillipCapital POEMs trading platform.
The largest listed company in the world and also the most valuable brand name in the world (according to Forbes) is no stranger to our top 10 and turned in a solid fifth position over the last 12 months.
Although it hasn’t returned anything like the eye watering stock price moves like Tesla or others, the tech stalwart was still up a healthy 97% from May 2020 to the highs of Jan 2021. The stock is also less volatile that others so some investors may see Apple as a staple for their portfolio or more attractive to the conservative trader.
Recently Apple had given up more than 2-3% on a single day a number of times. There is no fundamental change in its business that warrants such weakness but the market has been generally averse to mega-cap tech stocks.
Not all things are bleak for Apple, though. The company stands to benefit from renewed spending on 5G, post-pandemic. Recent weakness may entice long-term investors to pick up Apple at more affordable levels than its previous higher valuations.
The remainder of the top 10 was made up of:
- Moderna – Biotech
- Palantir Tech – Technology
- Zoom – Technology
- Facebook – Technology
- Xpeng – EV manufacturer
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