Australian investors have been doing some bargain hunting among big name US stocks.
The S&P 500 Index (SP: .INX) notched another record closing high yesterday, putting the benchmark US index up 33.6% over the past year. However, not all US stocks have joined the rally.
Shares in Intel Corp (NASDAQ: INTC), for example, are down 34.9% since this time last year.
While the CrowdStrike Holdings Inc (NASDAQ: CRWD) share price is up 64.1% in a year, shares are down 23.6% since 8 July.
Nike Inc (NYSE: NKE) has also come under pressure, with shares down 14.9% over a year.
But, an increasing number of Aussie investors have seen the recent headwinds pressuring these blue-chip US stocks as an opportune time to buy the dip.
Image source: Getty Images
Aussie investors snapping up US stocks
New data from eToro showed that CrowdStrike, Nike, and Intel were the 'top risers' in the third quarter.
CrowdStrike saw a 77% increase in holders, Nike saw a 24% increase, and Intel followed with a 23% increase in holders over Q3, as these US stocks all came under selling pressure.
CrowdStrike led the pack as investors decided this was no falling knife but rather a rare opportunity after the cybersecurity company's share price plunged more than 40% in July. That came on the heels of CrowdStrike's jumbled update, which led to worldwide computer and system outages.
Nike's share price was hit after the company posted a 10% decrease in revenue in the past quarter amid stiff competition.
And Intel's shares were heavily sold off following a disappointing earnings report in August when the company announced plans to slash its workforce and suspend its dividend payouts.
Commenting on the big boost in interest for these three US stocks, eToro market analyst Josh Gilbert said, "Retail investors went on a hunt for bargains this past quarter, snapping up stocks whose share prices have taken a big hit."
Gilbert added:
The fact that many investors are able to look past short-term price movements of these stocks, such as CrowdStrike's outage, reaffirms their faith in these companies. Being reactive to market changes is a valuable skill for any investor.
Markets are dynamic, and the ability to quickly assess and adapt to new developments – whether in geopolitics, corporate actions, or economic data – can provide a significant edge in navigating volatility and seizing opportunities.
We know that most of our investors have long-term time horizons, so when they see high-quality businesses such as Nike sell-off, they're taking the opportunity with both hands.
As always, whether you're investing in ASX shares or US stocks, be sure to do your own research first. Or simply reach out for some expert advice.
