eToro's Q4 Insights: Top Stocks, Top Risers, and Top Fallers

Retail investors continued to back weight loss drugmakers in Q4 while also locking in profits from some of 2023’s biggest cash cows, according to the latest quarterly stocks data from trading and investing platform eToro.

eToro looked at which companies saw the biggest proportionate change in holders at the end of Q4 versus the end of Q3 (table 1), while also looking at the 10 most widely held stocks on the platform (table 2).

The list of most widely held stocks was once again led by Tesla and Amazon, both of which saw massive share price gains in 2023. After a phenomenal 12 months in which its share price jumped 239%, the most in the S&P 500, Nvidia has now cemented its place as the seventh most held stock on the eToro platform, ahead of tech stalwart Alphabet.

Weight loss drugmakers featured prominently in the 10 ‘top risers’ list once again. Danish firm Novo-Nordisk, manufacturer of the weight loss drug Wegovy, and Eli Lilly & Co, manufacturer of Tirzepatide, saw the number of eToro users holding the stocks jump 42% and 33% respectively in Q4. Both firms enjoyed 9-11% share price gains in the final quarter of last year, albeit at more modest levels than the gains seen earlier in the year. Pharma was also a popular theme among Romanian investors, with Pfizer (+8%) and Johnson and Johnson (+4%) gaining in the number of holders in the last quarter of 2023.

Retail investors also appeared to buy the dip in Q4, with several underperforming firms featuring on the ‘top risers’ list. For example, German pharmaceutical giant Bayer saw a 36% increase in eToro holders, after the firm’s share price hit a 12-year low. Meanwhile, Siemens Energy saw a 17% jump in eToro users holding the stock, after the firm’s share price hit a record low in October.

On the other hand, Romanian retail investors seem to be cashing out of tech stocks, with Adobe (-9%), while CxApp, Intel, AMD lost 8% in the number of Romanian holders.

Commenting on the data, eToro Global Market Strategist Ben Laidler said: “Retail investors clearly feel that the obesity drug train has a long way to go, with eToro users continuing to flock to the industry’s two biggest names in Q4. Whilst some of these investors might feel they were late to the party, share price returns of 9% and 11% in three months are certainly not to be sniffed at. We also saw bargain hunters snapping up firms which have struggled in recent times – not a bad strategy when you consider the recovery that some of 2022’s laggards made last year.”

At the other end of the spectrum, eToro users appeared to lock in their profits on some of 2023’s best performers by selling up. Amongst the ‘top fallers’ list was Salesforce, which saw a 12% drop in eToro holders in Q4. Uber and Micron Technologies, also saw drop-offs, losing 12% and 11% of holders respectively. All three of these companies saw phenomenal share price gains in 2023.

Laidler adds: “At the end of a calendar year, retail investors will typically assess their portfolio and consider whether any repositioning is necessary for the following year. Based on what we’ve seen, it’s clearly also a time when many decide to cash in on some of their strong performers, with several big tech names with outstanding 2023 share price gains seeing a drop off in holders on the eToro platform at the end of 2023. This may prove to be prudent if predictions around the market swing to cheaper and more economically cyclical shares prove accurate.”