The beginning of a new year presents a fantastic opportunity to tweak your investment strategy. A report from eToro has revealed the most popular stocks among investors on its platform. For me, the report affirmed my decision to hold onto the Meta stock that I already own.
The report also encouraged me to consider investing in some other high-performing stocks. Here’s a look at the data from eToro and why I believe that Meta is a sure keep for 2022.
eToro’s top ten most held stocks in Q4
On 6 January, eToro released its list of the top ten most held stocks in Q4 2021. Tesla Motors and Nio Inc. remained in the top two spots, proving yet again that they are valuable investments to hold.
Taking spots three and four were e-commerce giants Amazon and Alibaba, followed by Apple in fifth. With an increase in online shopping during the pandemic, it comes as no surprise that these stocks remain popular with investors.
In sixth place was Meta platforms, previously known as Facebook Inc. Interest in this stock began to rise towards the end of 2021 when the tech company became a clear leader in the emerging metaverse sector.
The remaining four spots were taken by GameStop Corp, Microsoft, Alphabet and NVIDIA Corp. GameStop, in particular, has made big moves this year, moving from 150th position on eToro’s list in 2020 to seventh in Q4 2021. The newfound popularity of GameStop is probably still partly due to activity at the beginning of 2021 that saw a sudden rise in demand for the video game stock.
Commenting on the Q4 data, Ben Laidler, eToro’s market strategist, explained: “Six of the top 10 most held stocks on our platform at the end of the fourth quarter are what I would call the Big Tech’s ‘new defensives’. Or, in other words, firms that have dominant market positions, strong growth, high margins and fortress balance sheets.
“While they may have high valuations, investors are beginning to see them as all-weather stocks able to successfully navigate whatever the Fed or the economy throws at them.”
Why I’m holding onto Meta stock in 2022
When Facebook rebranded itself as Meta in October 2021, I made the decision to buy a stock. Facebook had already proven to be a global success, and I hoped that Meta would follow in its footsteps.
I decided to hold onto the stock and eToro’s Q4 data has affirmed my decision. Between Q3 and Q4 of 2021, Meta surged from 13th position to sixth. Moreover, the stock is currently at 23 times its 2022 consensus earnings and has a valuation that is almost in line with the S&P 500. As a result, I believe that Meta is a stock worth holding onto in 2022.
One of the main reasons that I believe Meta is a stock worth holding onto is that a number of Big Tech companies are already preparing to follow the metaverse trend. At the WOW Summit in Dubai 2021, organiser Guy Yanpolskiy suggested that gaming giants Sony and Nintendo may also take part.
With an increasing number of names hopping on the metaverse bandwagon, it seems wise to assume that the stock still has a way to go in the future. For this reason, I plan to hold onto the meta stock as a long-term investment.
Other Meta-related stocks that I would consider
Meta isn’t the only stock that is attracting interest amid the metaverse trend. Many tech companies and gaming firms have also seen a surge of interest in Q4. I have personally invested in the Decentraland cryptocurrency stock. Decentraland is a virtual world platform in which users can buy NFTs using the native cryptocurrency MANNA.
Other stocks that I am considering due to the rise of the metaverse include Roblox, Nvidia and Unity Software. Tech firms are expected to play a significant role in the metaverse, which is expected to arrive by 2031.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Ruby Layram owns shares of Meta.
The Motley Fool UK has recommended Alphabet (A shares), Amazon, Apple, and Microsoft. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a diverse range of insights makes us better investors.
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About the author
Ruby is a freelance writer who enjoys writing about all things personal finance. After embarking on her own side hustle journey three years ago, Ruby is passionate about helping others to learn about the ins and outs of persona… Read More
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