Apple is no longer the stock of choice for retail investors – Business AM

In 2022, Tesla stock was the most bought stock. It therefore exceeds the Cupertino company, which dominated this area last year.

Why is this important?

As with all tech companies, 2022 has been a complicated year. Tesla and Apple are no exception even though the latter have maintained investor confidence, pushing up the number of Tesla and Apple shares compared to 2021.

News: According to research firm Vanda, Tesla has overtaken Apple as retail investors’ favorite stock in 2022.

  • Cumulative net purchases by individuals for Tesla shares soared 424%, from $2.94 billion in 2021 to $15.41 billion this year, Vanda said in a weekly note.
  • That figure surpassed Apple’s $15.21 billion in cumulative net purchases this year, with a relatively more modest growth rate of 18%, compared to $12.85 billion in 2021.
  • The drop in Tesla’s stock price, combined with the influence of some investors, like Cathie Wood, who remain confident in the stock explains the enthusiasm for the electric car manufacturer. The goal is to take advantage of the low price of the action which they hope to see explode as some have announced.
  • Added to this are Musk’s various escapades towards Apple which, again according to Vanda, played into the preference of retail investors: “The contrarian bias of retail investors kicked into high gear when TSLA shares fell after the recent escapades of Musk as CEO of Twitter vs. Apple earlier this month,” says Marco Iachini, senior vice president of research at Vanda in the company’s latest research note.

The context : In 2022, Tesla stock fell by half but managed to maintain the confidence of major investors.

  • Tesla stock is down 50% in 2022. This is due to several factors:
    • Because of inflation, central banks have raised interest rates in the but to cool the economy. Less risky assets – bonds – are favored over the equity market.
    • The takeover of Twitter by Elon Musk has sparked fears that the billionaire will abandon Tesla.
    • Due to the strict zero covid policy in China, the Tesla mega-factory has seen its production slow down.
  • Some investors think Tesla’s stock will explode again. In particular Cathie Wood who believes that the arrival of Tesla’s Robotaxis will be a success and will drive up the action.

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