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Big Tech dominates most popular stocks of 2020

by LLB Editor
23rd Dec 20 10:53 am

Big Tech companies completely dominate the list of 2020’s most popular stocks as coronavirus continues to push the sector’s valuations to new highs.

Data from investment platform eToro shows that all of the top 10 most popular stocks this year are either US or Chinese tech giants.

Chinese electric car maker Nio Inc has been the most popular stock with eToro’s 17 million registered users, with buy orders rocketing by more than 27,000% year-on-year.

Nio rival Tesla, Apple, Amazon and Microsoft make up the rest of the top five most popular stocks of 2020, capping off what has been an extraordinary year for the tech sector.

The data follows a major research study of 18,000 Europeans, commissioned by eToro, which explores how millions of households have become dependent on tech during the pandemic.

eToro’s Digital Transformation Index, carried out in conjunction with the Centre for Economics and Business Research (Cebr), found that over a third (36%) of Brits had increased their use of tech since the start of the pandemic.

This year millions of workers and families have had to resort to using tech services such as Zoom, Microsoft Teams and Slack to work and to stay in touch with friends and family.

The share prices of many Big Tech firms have continued to soar as we reach year-end, a sign that investors are backing the sector to continue to shine well into 2021.

That chimes with the findings of eToro’s Digital Transformation Index, which found a majority of Brits would welcome more digitalisation in many aspects of their lives.

Some 60% of Brits say they support further digitalisation to help them manage their finances, such as an increased reliance on online banking, while more than 70% would be in favour of managing their gas and electric online.

A majority of Brits are also in favour of increased digitalisation in healthcare (52%), through virtual GP appointments; entertainment (62%), through online streaming; and retail (61%).

Adam Vettese, analyst at eToro, said: “Disruptive tech is an area of the market that we know retail investors love, so it is perhaps no surprise that during the year when coronavirus pushed much of our lives online, these companies have done particularly well.

“This year we’ve seen a flood of new retail investors dipping their toes into the capital markets. They are investing in the brands that they recognise from daily personal use, especially tech.

“While we hope that 2021 will bring the end of the pandemic, it is unlikely that tech adoption will reverse, as more and more people embrace technology as part of their daily lives.

“As an investor, it can be difficult to know which horse to back. What might seem like a timely and trendy advance may have little practical use in the real world, which is why many tech companies fail to live up to their promise. It can be difficult to assess where and when the real technological gains will be made.

“Our research shows households would welcome greater digitilisation in health, energy and finance, therefore we may well see advances in these sectors in the coming year.”

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