Another level of alternative data - discover the top 5 most traded companies by retail traders!

Hey-hey! We all know that 2021 has proven to be a breakthrough year for amateur/retail traders. In addition to increasing the trading volumes, these guys use leverage, buy and sell options to do speculations on individual companies, and rely on social media platforms (Reddit, Twitter) to strengthen their portfolio strategies. And according to the U.S. News & World Report reported on Wednesday (June 30), retail investors currently account for roughly 10% of daily trading volume on the Russell 3000, the broadest U.S. stocks index, after peaking at 15% in September as lockdown boredom and extra savings triggered interest in stock markets.

Since the retail traders definitely have a great influence on the overall trading situation, we decided to add a new alternative data point you can use in conjunction with your trading strategies - the percentage of the number of transactions on the market made by retail traders of the total volume of transactions on the market. In addition to this, we also thought that it would be nice to take a look at this metric from a sentimental perspective (green line on the graphs below) - the higher sentiment score for the company - the better, the lower sentiment score - it means that the company is being shorted.

Let's drill into this and discover the top 5 companies by percentage of trades by retail traders for the last week:

1. Tesla ($TSLA) - Tesla is a vertically integrated sustainable energy company that also aims to transition the world to electric mobility by making electric vehicles.

Even after selling billion worth of shares by Elon Musk, $TSLA remains the most valuable automaker in the world, with a market valuation >$1 trillion.

2. Lucid Group, Inc. ($LCID) - is a technology and automotive company. It develops the next generation of electric vehicle (EV) technologies.

3. Nvidia ($NVDA) - operates as a visual computing company worldwide in two segments, Graphics and Compute & Networking.

Btw, $NVDA shares bounced back today from their mini sell-off - it happened after Nvidia crushed Wall Street's expectations when it released its fiscal 2022 third-quarter results on November 17th, with its record numbers and impressive guidance sending the stock up 8% to a new all-time high post the release.

4. Apple ($AAPL) - Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), AirPods, and TV boxes (Apple TV), among others.

5. AMD ($AMD) - for more than 50 years Advanced Micro Devices (AMD) has driven innovation in high-performance computing, graphics, and visualization technologies - the building blocks for gaming, immersive platforms, and the data center.

What are your thoughts about it? We trust that it's another brilliant indicator of companies' performance all over the Web which, with a correct approach, will definitely become an additional powerful investment signal for you.

Today's analysis is available here: https://contora.ai/top_companies?industry=all&growth=percent of retail trades&over=last week

P.S: you can easily check other alternative data points for today's companies (and any other US public company) just by clicking on their tickers :)



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