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Australian retail investors buy the dip in CrowdStrike and Nike

Published 10/10/2024, 11:51 am
Updated 10/10/2024, 12:31 pm
© Reuters. Australian retail investors buy the dip in CrowdStrike and Nike
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CrowdStrike Holdings Inc (NASDAQ:CRWD), Nike Inc (NYSE:NKE, ETR:NKE) and Intel Corp (NASDAQ:INTC, ETR:INL) were among the top risers in Q3, as Australian investors took advantage of price dips to buy into these stocks.

New data from eToro has revealed that CrowdStrike, Nike and Intel saw significant growth despite notable financial setbacks during the quarter.

CrowdStrike was the top riser, driven by a 77% surge in holders following a 40% plunge in its share price due to a faulty update causing mass outages.

Nike gained 24% in holders despite a 10% revenue decline as competition with New Balance intensified. Intel, with a 23% increase in holders, faced a 53% year-to-date drop, exacerbated by a disappointing earnings report and dividend suspension.

The data also highlights sustained interest in artificial intelligence (AI) stocks among Australian investors. NVIDIA Corp (NASDAQ:NVDA, ETR:NVD), Micron Technology Inc (NASDAQ:MU) and AMD saw significant increases in holders, with AMD securing a spot in eToro’s top 10 most-held stocks for the quarter.

In contrast, Adobe Systems (NASDAQ:ADBE), GE Vernova and Sony were recognised as the quarter’s biggest fallers.

“Retail investors went on a hunt for bargains this past quarter, snapping up stocks whose share prices have taken a big hit," eToro market analyst Josh Gilbert said.

"The fact that many investors are able to look past short-term price movements of these stocks, such as CrowdStrike’s outage, reaffirms their faith in these companies.

“Being reactive to market changes is a valuable skill for any investor. Markets are dynamic and the ability to quickly assess and adapt to new developments – whether in geopolitics, corporate actions or economic data – can provide a significant edge in navigating volatility and seizing opportunities.

"We know that most of our investors have long-term time horizons, so when they see high-quality businesses such as Nike sell-off, they’re taking the opportunity with both hands.”

On the other end of the spectrum, American computer software company Adobe was the top faller in the third quarter (-14%), with its record fiscal Q3 being overshadowed by a weak revenue guidance for Q4.

Other fallers include GE Vernova (-14%), which recently announced it was looking at scaling back the wind turbine portion of its business, including large job cuts.

Sony placed third on the top fallers list ( -12%) after announcing in August that it was increasing the price of PS5 consoles in Japan by 20% from September, due to challenging economic factors.

AI and mining stocks remain popular

AI stocks maintained their popularity, with NVIDIA and Micron Technology both up 16% in holders, and Advanced Micro Devices (NASDAQ:AMD), Inc rising 5%. AMD also replaced Alibaba (NYSE:BABA) Inc. in the top 10 most-held stocks.

Mining stocks were also prominent, with Core Lithium Ltd (ASX:CXO) (+15%), BHP (ASX:BHP) Group Ltd (LSE:BHP, ASX:BHP) (+13%) and Pilbara Minerals Ltd (ASX:PLS) (+4%) featuring among the top risers, rebounding by the end of the quarter.

“Investors throughout this year have been unwilling to give up on miners such as BHP and Core Lithium, retaining confidence that China’s economy would receive a boost," Gilbert said.

"Those investors have been well rewarded for keeping that belief with both companies seeing their shares surge in the last month thanks to new stimulus measures in China.”

Stocks which have seen the biggest proportional increase and decrease in holders on the eToro platform in Australia quarter on quarter.

Read more on Proactive Investors AU

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