- Three in five U.S. retail investors expect the bull market to span 2025, with the majority backing AI stocks to keep rising.
- 48% of retail investors believe the Magnificent 7 will outperform the broader market in 2025.
- Amazon is the favorite Magnificent 7 stock for 2025, followed by Tesla and Apple.
- Majority are adapting their investing approach following Trump victory, with crypto allocations set to rise.
Wednesday, December 18th, 2024 – Retail investors are optimistic that the current bull market will continue throughout next year, with Amazon 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 1,000 retail investors across the United States, found that 61% predict the bull market will persist. Confidence in AI stocks also remains high, with 16% expecting them to continue their significant rise into 2025, while 42% expect more gradual increases in their share prices.
Amazon tops the ‘Magnificent 7’
When asked which of the ’Magnificent 7’ stocks they are most likely to increase their investment in for 2025, U.S. retail investors ranked Amazon first, with 12% selecting the online retailer, which has enjoyed a nice boost to its share price this holiday season.
Tesla (11%) and Apple (10%) followed closely behind, while Nvidia (8%), Alphabet and Microsoft (7%), 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 more cautious overall, with only 16% expecting them to significantly outperform the market, and 32% believing they will only slightly outperform.
The data also highlighted gender differences, with women more likely to increase their investments in Amazon in 2025, while men favored Nvidia.
Table shows US retail investor sentiment towards Magnificent 7 stocks in 2025
| Stock | Most likely to increase investment in 2025 |
| Amazon | 12% |
| Tesla | 11% |
| Apple | 10% |
| Nvidia | 8% |
| Alphabet | 7% |
| Microsoft | 7% |
| Meta | 6% |
| None | 21% |
| Don’t know | 18% |
Commenting on the data, eToro Investment Analyst Bret Kenwell said: “Tech often serves as a leadership group for US stocks, and with mega-cap and AI-related stocks garnering strong momentum as Q4 draws to a close, retail investors are looking for that to continue in 2025. Given how well markets have performed and how well these companies are doing, it’s no surprise that investors are optimistic.
“It’s also worth mentioning that Tesla and Amazon are the two-best performing Magnificent 7 holdings in Q4, highlighting retail investors’ ability to identify and seize opportunities.”
US election sparks strategic shifts
The re-election of Donald Trump has prompted significant adjustments in retail investors’ portfolios, with 55% adapting their strategies. Of those planning changes, 66% are increasing their allocation to crypto, a more popular option than US stocks (50%). 55% plan to increase their cash holdings, which remains the most held asset class (79%).
Table shows how retail investors are adapting their portfolio following the US election
| US stocks | Cryptoassets | Cash assets | |
| Increase | 50% | 66% | 55% |
| Maintain | 31% | 25% | 34% |
| Decrease | 14% | 8% | 9% |
Kenwell adds: “Retail investors are showing a keen understanding of market dynamics and the implications of the macroeconomic and political environment. Given Donald Trump’s pro-crypto stance, the preference toward cryptoassets shows investors’ expectation that the crypto rally will persist into the new year. At the same time, the increase in cash allocations is a strategic move as having cash available puts investors in a position to take advantage of a pullback in stocks or crypto amid an otherwise solid economic backdrop, highlighting discipline among retail investors.”
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 November 18 – November 28, 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.
Media contacts
pr@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have over 38 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news.
DISCLAIMER
Securities trading is offered by eToro USA Securities Inc., member of FINRA and SIPC, a self-directed broker-dealer that does not provide recommendations or investment advice. Options involve risk and are not suitable for all investors. Please review Characteristics and Risks of Standardized Options prior to engaging in options trading. Content, research, tools, and stock symbols on eToro’s website are for educational purposes only and do not imply a recommendation or solicitation to engage in any specific investment strategy. All investments involve risk, losses may exceed the amount of principal invested, and past performance does not guarantee future results. Cryptotrading is offered by eToro USA LLC. This entity is not a registered broker-dealer or FINRA member and your cryptocurrency holdings are not FDIC or SIPC insured. Visit our Disclosure Library for additional important disclosures including our Customer Relationship Summary. FINRA Brokercheck © 2023