Anika Begay
This month’s market crash has done little to dampen retail appetite for stocks, especially tech. Small investors are buying the dip in old favorites like Nvidia and Tesla, as well as picking up the dip in Chipotle, according to a Wednesday note from JPMorgan. Retail traders have bought about $1.8 billion in individual stocks, with $1.3 billion of that spending in just four names: Tesla, Nvidia, Microsoft and Palantir. Nvidia is up more than 12% this week, while Tesla is up slightly less than 1%. NVDA 5D mountain Nvidia They’ve also bought the dip in Chipotle and sold the rally in Starbucks, having identified the surprising leadership shakeup as an opportunity. Starbucks said Tuesday it will replace CEO Laxman Narasimhan with Chipotle CEO Brian Niccol. Starbucks shares are up 24.5% on their best day ever, while Chipotle shares are down more than 10%. Elsewhere, Alphabet shares are also selling after a federal judge ruled last week that the internet giant violated antitrust laws by illegally holding a monopoly on search and text advertising. Retail appetite for the stock is notable given the volatility this month. Even with growth concerns rising and the yen carry trade winding down, retail net buying has remained near year-high levels, at a pace of $1.4 billion a day, according to Vanda Research. “While stocks have been falling in August, retail buying has been rising, far exceeding even our most optimistic expectations,” wrote Marco Iachini, senior vice president of research at Vanda Research. The Wall Street firm noted an interesting behavioral divide in the recent data. Younger traders sought to buy the tech dip, while older, wealthier investors sought to reduce their positions.
