While no company is immune from an economic downturn, technology companies seem less vulnerable to the pandemic and economic situation. This is reflected in the new data from investment platform eToro, which shows that nine out of the top 10 invested stocks by Malaysians are technology companies last month.
With a 19% increase in Malaysian investor buys compared with March, Tesla Inc. became the most popular choice of stock on eToro as it rose from 4th to 1st place in April. In addition, Advanced Micro Devices (AMD) remains as a popular stock in April with a 114% increase in trading.
Investors realize that amidst the stay-at-home economy, there would be a surge in demand for the company’s central processing units (CPUs) and graphics processing units (GPUs) that are used in laptops and data centers.
Nemo Qin, Senior Market Analyst at eToro, commented, “During the economic downturn, investors prefer to invest in consumer staples or dividend aristocrats than other sectors. However, it seems that the interest in the technology sector has not only remained, but technology stocks have increased in popularity among investors during the pandemic. I believe that the popularity and high demand for technology investment will remain for the rest of the year.”
Qin added, “There are a few reasons why technology stocks are popular among investors, such as these companies have successful business models or healthy financial statuses that allow them to continue supporting the company development and business operations.
“Another reason is, people are spending more time on technology products, be it using streaming services, e-commerce, video games, online fitness, e-Learning, and working from home – and many technology companies, such as Netflix and Zoom, are recognizing these trends and seizing these opportunities to generate more income and revenue.”
Most invested stocks by Malaysian clients on the eToro investment platform – April 2020
|April rank||Stock||Percentage change in trading activity||March rank|