There are plenty of new and easy ways for retail investors like you and me to get involved in the market these days. With all this access and choice, it’s interesting to see which stocks are attracting the most attention.
In this article, I’ll be walking you through the category of shares that are extremely popular amongst investors right now and give my thoughts on what the next big thing might be.
What type of stock is popular with retail investors right now?
Research from Freetrade shows that demand for electric vehicle (EV) stocks is accelerating at a fast pace. The cheap share dealing platform has created a monthly ‘Retail Investor Barometer’ that measures the latest investing trends.
During November, EV companies were racing for pole position, with the following stocks all making it into the top ten buys on the platform:
Why is there such demand for EV stocks?
Dan Lane, senior analyst at Freetrade, explains some of the most recent developments in demand for these companies. He notes, “One trend that shows no sign of pumping the brakes is the appetite for anything EV. The Musketeers are out in force after the Tesla boss mulled over selling a big chunk of shares with 62.8 million of his closest friends on Twitter.
“But the biggest story has been the mammoth valuation the market has afforded Rivian. $100 billion without a battery-powered truck in sight will raise a few eyebrows but, with moneybags like Amazon in the background, investors clearly see a bright future for the newest EV contender.”
What will be the next most-popular stock for retail investors?
Looking at the full list of popular stocks and shares for retail investors offers decent insight into what’s hot right now and what could be the next big breakaway sector.
| Position | Company |
| 1 | Tesla (TSLA) |
| 2 | Amazon.com (AMZN) |
| 3 | Apple (APPL) |
| 4 | Rivian Automotive (RIVN) |
| 5 | Meta (FB) |
| 6 | Pod Point Group Holdings (PODP) |
| 7 | Microsoft (MSFT) |
| 8 | Lucid Group (LCID) |
| 9 | NVIDIA (NVDA) |
| 10 | Alphabet (GOOGL) |
Although not technically a fully-fledged EV stock, NVIDIA (NVDA) was the biggest riser in terms of popularity on Freetrade. The company mostly makes computer chips and graphic cards, which are items being used in more and more industries.
Right now, the chips are used for gaming and for data processing in the EV industry. But they’re also being utilised in up-and-coming spaces such as cryptocurrency and the metaverse.
With a high price-to-earnings ratio (P/E ratio), there are worries it’s an overvalued stock. But as you can see with most EV shares, high valuations are not a bother for retail investors. So, chip-making companies are definitely worth keeping an eye on going forward.
What do retail investors need to know about investing?
Investing can be a brilliant way to build wealth and make sure your savings don’t suffer due to inflation and poor interest rates. However, to get the most out of investments, there are a few things worth bearing in mind:
- You can invest in the majority of these stocks and shares using a top-rated share dealing platform that gives you access to international markets.
- Using a cheap share dealing account with low fees can really help your portfolio grow over time, making the most out of compound interest.
- Be sure to use a stocks and shares ISA account because this means your investing gains are protected from the taxman.
- You may get out less than you put in. So, always make sure the rest of your finances are in good shape before you invest. And if you need some extra guidance before putting your money to work, check out our complete guide to share dealing.
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About the author
George is a writer and qualified financial adviser focused on educating others in personal finance & investing.
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