- Three in five (59%) global retail investors expect bull market to span 2025, with majority (55%) backing AI stocks to keep rising
- Tesla the most favoured Magnificent 7 stock for 2025, followed by Apple and Amazon
- Majority have adapted their investing approach following Donald Trump victory, with crypto allocations set to rise
Tuesday 17th December 2024 – Retail investors are optimistic that the current bull market will continue throughout next year, with Tesla emerging as the most popular stock among the ‘Magnificent 7’, according to the latest quarterly Retail Investor Beat from trading and investing platform eToro.
The study, which surveyed 10,000 retail investors across 12 countries, found that 59% predict the bull market will persist. Confidence in AI stocks also remains high, with 11% expecting them to rise significantly in 2025, whilst 44% expect more gradual increases in their share prices.
Tesla tops the ‘Magnificent 7’ stocks for 2025
When asked which of the ’Magnificent 7’ stocks they are most likely to increase their investment in for 2025, retail investors ranked Tesla first, with 14% selecting the EV giant, which has enjoyed a share price boost since the US election.
Apple and Amazon followed closely, both chosen by 12%, while Nvidia (9%), Alphabet (8%), Microsoft (8%), and Meta (6%) rounded out the list. When asked how they believe the Magnificent 7 will perform as a whole in 2025, retail investors were slightly more measured, with 13% tipping them to significantly outperform the market, and 35% believing they will only slightly outperform.
The data also highlighted gender differences, with women more likely to increase their investments in Apple and Amazon in 2025, while men favoured Tesla.
Table shows global retail investor sentiment towards Magnificent 7 stocks in 2025
| Stock | Most likely to increase investment in 2025 |
| Tesla | 14% |
| Apple | 12% |
| Amazon | 12% |
| Nvidia | 9% |
| Alphabet | 8% |
| Microsoft | 8% |
| Meta | 6% |
| None | 18% |
| Don’t know | 14% |
Commenting on the data, eToro analyst Sam North said: “Retail investors are entering 2025 with a strong sense of optimism, buoyed by the ongoing bull market and the outstanding performance of AI stocks. Tesla’s top spot amongst the Magnificent 7 reflects not only confidence in its innovation but also the impact of Elon Musk’s vocal support for Donald Trump and the stock’s surge since the election.
“Whilst extremely high retail investor sentiment can often be a signal for a pullback, we’ve also seen markets historically perform well when a new president enters the White House, so you can’t blame investors for feeling positive.”
US election sparks strategic shifts
The re-election of Donald Trump has prompted significant adjustments in retail investors’ portfolios, with 51% adapting their strategies in response. Of those planning changes, 68% are increasing their allocation to crypto, a more popular option than US stocks (51%). Additionally, 45% of retail investors plan to increase their cash holdings.
Table shows how retail investors are adapting their portfolio following the US election
| US stocks | Cryptoassets | Cash assets | |
| Greatly increase | 13% | 29% | 11% |
| Somewhat increase | 38% | 39% | 34% |
| Maintain | 26% | 21% | 38% |
| Somewhat decrease | 10% | 7% | 9% |
| Greatly decrease | 5% | 3% | 3% |
| Net increase | 51% | 68% | 45% |
North adds: “The re-election of Donald Trump has introduced a new dynamic for retail investors, with many taking a proactive approach to portfolio adjustments. The sharp increase in crypto allocations reflects growing confidence in the asset class, bolstered by Trump’s pro-crypto rhetoric.
“At the same time, the decision by some to increase cash holdings, akin to Warren Buffett’s recent move, highlights a balanced approach to managing potential risks in a changing macroeconomic and policy environment.”
ENDS
Notes to editors
About this report
The latest Retail Investor Beat was based on a survey of 10,000 retail investors across 12 countries and 3 continents. The following countries had 1,000 respondents: UK, US, Germany, France, Australia, Italy and Spain. The following countries had 600 respondents: Netherlands, Denmark, Poland, Romania, and the Czech Republic.
The survey was conducted from 18 November – 28 November 2024 and carried out by research company Opinium. Retail investors were defined as self-directed or advised and had to hold at least one investment product including shares, bonds, funds, investment ISAs or equivalent. They did not need to be eToro users.
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