February was a busy time for the stock market, and Meta and PayPal both drew significant interest. The market was largely influenced by Q4 reports that sparked both buying and selling frenzies among traders. As we get stuck into the month of March, now is a fantastic time to take a look at what happened last month and make informed decisions about future trades.
So, here’s what happened in the February stock market that could inform trading decisions in March and beyond.
Meta was the most-traded stock in February
Fintech specialists Saxo Markets have revealed their list of the most popular global stocks for UK investors in February.
Perhaps to no one’s surprise, Meta was the most traded stock amongst UK investors, moving up nine positions from January. This comes as the company makes increasing efforts to transition to the Metaverse. However, the social media company’s stock saw a drop of 26% in one day following its quarterly earnings.
However, it seems investors were keen to buy the dip. Mike Owens from Saxo Markets said, “Meta’s share price drop following its quarterly report sparked a trading frenzy. In the day following the announcement, Saxo clients bought almost 20-times the amount of Meta shares compared to the previous 24-hour period.”
What happened to the rest of the stock market?
Meta was not the only stock to change its top-20 position in February. Tesla stock lost its place at the top of the list and now ranks second. Interestingly, Tesla was not the only electric vehicle company to see a drop. Nio stock also fell, losing its place on the top 20 list completely!
On the other hand, a number of new stocks emerged onto the top 20 list last month. PayPal, Rolls-Royce, Block Inc, Airlines Group SA and Roblox Corporation all made their way onto the list. In fact, PayPal managed to rise into the top three!
Owens explained that much of the PayPal frenzy was due to its quarterly report. In the report, the company revealed that it had missed its expected earnings.
The appearance of Roblox on the top 20 list came as a surprise to many experts. Other gaming and technology firms including Gamestop, Microsoft and NVIDIA moved down on the list after experiencing a decrease in trades since January. In fact, Gamestop, Microsoft and Apple stocks were the biggest fallers within the top 20.
How to use the top 20 list to make informed decisions
Here at The Motley Fool UK, our mission is to help our readers make informed decisions about their money. Furthermore, investing in the stock market is a great way to grow your money if you are able to make good judgements. However, it’s important to note that all trading comes with a certain level of risk.
The top 20 list is a good tool that investors could use to guide their decision making. The list reveals stocks that are popular amongst traders. When a stock is popular, there is a chance that it might experience significant movement in the market as traders rush to either buy or sell shares.
Nevertheless, investors should always conduct their own research before making any investment decisions. It is always a good idea to keep on top of market news and stay updated on stock movement.
If you’re unsure about how to invest, you could consider investing in a ready-made stocks and shares ISA. These investment accounts provide users with a pre-established portfolio that has been built by experts through skilled analysis. Stocks and shares ISAs are a fantastic way for beginners to enter into the world of investing.