Well, it's a new year for investing, and the share market is lapping it up. Since the start of 2023, the S&P/ASX 200 Index (ASX: XJO) has gained a pleasing 7.34%, which is pretty close to its average long-term return over a year.

So we are certainly off to the races this year thus far.

Here at the Fool, we like to be eternal optimists when it comes to shares. Our own chief investment officer Scott Phillips recently spoke to Gemma Dale for NABtrade's 'Your Wealth' podcast. Scott was asked what he's excited about in 2023, so let's see what he served up.

1) Another year of compounding our wealth

Scott loves the compounding effects that the share market can bring patient investors. Here's some of what he said about 2023 and what it can bring to long-term shareowners:

You know I'm a massive fan of the Vanguard Index chart… a spectacularly good 30-year chart that Vanguard produce. Over the last 30 years to 30 June 2022, the market had turned $10 grand into $130 grand.

And so honestly, the thing I am most excited about is also the most boring thing, which is, this year will be one of the [next] 30 years. Investing [going forward] for the long term will be astonishingly successful and value-creating, in my opinion…

Part of it is not being too short term in your view (and one year is a short-term view). So I'm excited for people to continue to add money regularly to their investment accounts, diversify properly, invest intelligently, reinvest their dividends… all those things we know we should do.

2) A return to 'normal' ASX share investing

The last few years have seen some (frankly) crazy trends, fads, and occurrences in the world of investing. Near-zero interest rates, unprecedented government stimulus, and a pandemic have all upended financial markets.

This has resulted in crazes such as the 'meme stock' frenzy and the cryptocurrency and NFT mania. And who could forget the GameStop Corp (NYSE: GME) saga, where retail investors banded together to short a shorter?

But Scott is looking forward to things returning to 'normal' in 2023:

I'm excited that investing might become a bit more normal. The way I was taught to invest was simple, thoughtful business analysis, and paying the right price for that business.

Since the outbreak of COVID (and perhaps a little bit before that)… growth has been in the ascendency almost permanently. And that's happened largely because the circumstances have been so unusual… It's kind of distorted markets a little bit.

But if you look at 2023, we've got some inflation, we've got higher (or 'normal') interest rates, and business fundamentals matter again…

I think we'll end up in more normal times, and I think that's really good thing for most investors who want to put the time in.

3) The cheap ASX shares still out there

Even though the share market has been on a tear in recent months, Scott still reckons there are pockets of value that are well worth exploring right now. Here's an excerpt on which rocks he's looking under in the new year:

At the beginning of 2023, I'm looking around at some of these bombed-out share prices, and saying hey, some have bombed out for very good reasons… but one area I really like now is retail... The prices of some of these businesses are way too low, given their long-term potential…

JB Hi-Fi Ltd (ASX: JBH) is a great example. At [its recent prices], even if we have a recession, even if JB's profits fall by 20% this year but come back and grow from there, I don't see a scenario where they are at least the level they are now, and probably a lot higher in five, or seven or ten years' time.

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Despite dropping 33% year to date, GameStop (NYSE: GME) stock is still up by a jaw-dropping 2,400% from the roughly $1.00 per share it was worth in early 2020. The company is flying high after the meme stock rally jacked up prices of heavily shorted equities.

But despite its lofty price tag, GameStop's fundamentals still leave much to be desired. Long-term investors should stay far away. Here's why.

A business in terminal decline?

Founded in 1984, GameStop has its roots as a brick-and-motor retail chain focused on new and used video game software. But like many companies that started in that period, its core business model became outdated with the rise of e-commerce, streaming, and digital downloads. And while GameStop has lasted much longer than other 80s babies like Blockbuster Video (which went bankrupt in 2010), the future looks bleak. 

GameStop's revenue has fallen 37% (from $9.55 billion to $6.01 billion) between 2012 and 2021. And the company has seen its market eroded by direct-to-consumer rivals like Valve Corporation's Steam, which allows users to download content directly from its platform. 

GameStop still has an economic moat as a place to buy and sell used games, but it is unclear if that niche will be enough to keep the company afloat. Forays into new businesses, such as non-fungible tokens (a form of digital collectibles), are yet to materially impact financial statements. And management's cryptocurrency efforts look more like a way to maintain hype for the stock than actually turn the business around, although time will tell.  

Second-quarter earnings were not impressive

GameStop's second-quarter earnings were lackluster. Net sales dropped 4% year over year to $1.14 billion because of a decline in software and hardware sales. And operating losses expanded from $58 million to $107.8 million in the period. That said, with $908.9 million in cash and just $32.1 million in long-term debt, the company has a healthy balance sheet.  

Instead of funding itself through cash flow and bond offerings, GameStop sells more shares of its (arguably) overpriced stock. This is the right thing to do from a business perspective, but it can harm shareholders by diluting their claim to future earnings, which lessens the fundamental value of their shares.

As of the second quarter, GameStop's outstanding shares totaled 304 million compared to just 66 million in early 2020. Investors should expect this number to continue growing because of the company's operational losses.

The valuation is simply too high

With a price-to-sales (P/S) ratio of 1.4, GameStop's stock doesn't look super overvalued compared to the S&P 500's average of 2.3. But those numbers don't tell the full story. The company operates in what appears to be a dying industry, with revenue eroding over the long term; plus, it isn't profitable and funds itself through equity dilution.

GameStop's valuation should be much lower in light of its many challenges. And investors should avoid the stock because of continued risk to the downside. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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While GameStop led the meme stock movement a year ago, today it's gains actually trail that of Bed Bath & Beyond and AMC, indicating that it might not be the focal point of the Wall Street Bets traders that it was early last year. The stock also trailed its meme stock peers on Friday, gaining only 4.3% in the previous session compared to double-digit gains for Bed Bath & Beyond and AMC.

What happened

Shares of GameStop (NYSE: GME) were rising today as part of a broader two-day rally in meme stocks, including AMC Entertainment Holdings (NYSE: AMC) and Bed Bath & Beyond (NASDAQ: BBBY). 

There was no particular news out on the video game retailer today. Instead, traders on Reddit's WallStreetBets teamed up to push the stock higher in a move reminiscent of GameStop's massive gains early last January.

As of 2:44 p.m. ET on Monday, the retail stock was up 8.1%.

So what

GameStop traders are trying the same play again. On WallStreetBets, traders are talking up GameStop and piling into the stock after shares have fallen back down to earth after a dramatic run-up last year.

GameStop stock is also not as heavily shorted as it once was. As of July 15, 22% of the float is sold short, meaning a substantial (but not overwhelming) percentage of investors are betting on the stock to fall.

Now what

Ironically, GameStop's meme bounce is coming at the same time as a sector slowdown in gaming. The NPD Group reported that consumer spending on video gaming fell 13% in the second quarter, and today, NVIDIA (NASDAQ: NVDA) stock fell after the chipmaker issued a disappointing second-quarter forecast due to a shortfall in gaming revenue. The video gaming industry was a big winner from the pandemic, so those headwinds are only natural as the pandemic effects fade.

GameStop stock rallied last year in part because Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen had begun accumulating a stake in the company, and he later joined the board, pushing the company to move deeper into e-commerce and areas like non-fungible tokens (NFTs). Though GameStop posted modest revenue growth in its most recent quarter, the company's losses actually widened, casting doubt on any potential turnaround.

While the stock could continue to rally with help from the WallStreetBets crowd, the fundamental case seems thin at this point.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Sezzle Inc (ASX: SZL) shares are enjoying a strong run today, up 9.3% to 24 cents.

This will surely be welcome news to battered Sezzle shareholders.

The ASX buy now, pay later (BNPL) company has been under heavy selling pressure since mid-2021. And the scrapping of its merger with Zip Co Ltd (ASX: ZIP) last week Tuesday saw Sezzle shares tumble another 38% on the day.

In the latest news, Sezzle is suing United States-based GameStop Corp (NYSE: GME) for an alleged breach of contract.

Why is GameStop being sued?

Sezzle stated that it's suing GameStop for the company's failure to maintain links to its BNPL services throughout its website.

Sezzle said it had a two-year merchant agreement with GameStop as of November 2020 for use of its payments platform. The company alleges that GameStop violated this agreement when it removed Sezzle's "functionality from its cart page and product detail pages without notifying Sezzle in direct breach of the contract".

According to Sezzle, when GameStop was approached about the breach of contract, it terminated Sezzle without notice and now is no longer paying its invoices.

GameStop did reportedly admit that it had removed Sezzle's widget and that currently Sezzle is not used on its website.

Sezzle said it is now asking for $1.4 million in damages and related service fees that GameStop has failed to pay. The BNPL share is also looking to recoup marketing expenses it spent on GameStop's behalf.

How have Sezzle shares been tracking?

Despite the big leap higher today, Sezzle shares remain well down over the medium term.

Year-to-date, the Sezzle share price is down 92%, which compares to a 12% loss posted by the All Ordinaries Index (ASX: XAO) so far in 2022.

Over the past 12 months the picture is even gloomier, with Sezzle having tanked a painful 97%.

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GameStop's (NYSE: GME) stock split announcement finally dropped. Investors have been waiting since March for the move after the video game retailer dramatically increased the number of shares outstanding from 300 million to one billion with the goal of splitting the stock.

The shares will split by a four-to-one ratio, meaning for every share you own, you get three more, but each one will be worth one-fourth the price they previously traded at. So, with GameStop recently closing around $135 per share, an investor with 10 shares will now own 40 stubs instead, but each will be worth only $33.75.

Unfortunately, the "mother of all short squeezes," or MOASS, that meme stock traders have been waiting for still will not happen. Just because GameStop's split will be in the form of a 'dividend' doesn't mean there will be any special impact on short-sellers. Yes, they'll have to buy back four times as many shares, but they'll be priced lower, just like investors who are long on the stock.

Gaming the system

GameStop, of course, is one of the premiere meme stocks on the market, often trading more on how much chatter is generated on social media and internet stock discussion boards than on the fundamentals of the business. In those circles, the self-described 'apes' have encouraged each other to hold firm and not sell their shares because a short squeeze, or fast and notable run-up, in GameStop's share price was imminent.

The video game retailer remains a heavily shorted stock -- over one-fifth of its shares are sold short. So, when GameStop said it would be splitting its stock as a dividend, that was seen as the catalyst to set the MOASS in motion. But that's not how it works.

A special kind of dividend

Most people are familiar with a cash dividend, where a company pays you a portion of its profits each month, quarter, or some other interval. As I explained once before, GameStop deeming its stock split a dividend is more a type of boilerplate language than some incantation with special powers.

Another heavily shorted stock, Tesla, has also said it will split its stock as a dividend, as do many companies. Alphabet's 20-for-1 stock split on July 15 will be in the form of a special dividend.

By declaring the split a dividend, a company is really only changing its accounting, essentially how much it keeps in its retained earnings account, and not much else. GameStop's stock dividend won't affect its cash balances as it would if it issued a cash dividend (which could cost short-sellers a lot of money), and the split won't trigger a new 'gamma squeeze' on its shares.

More important matters to address

While GameStop's stock typically doesn't trade on its fundamentals, that doesn't mean it never does. After announcing its stock split, the video game retailer also said it had fired its CFO and was laying off employees. After jumping 15% on the split announcement, the stock tumbled again in the aftermath of the firing and layoffs.

Meme stock traders like to claim the game is rigged against them and that the Securities and Exchange Commission is allowing illegal or improper activities. These traders are also basking in the camaraderie that develops in the chat rooms. Yet, they also tend to reinforce the notion that if they hold on just a little longer, they could wait out the monied interests better against their stock and realize significant riches when the MOASS occurs.

There may very well be a triggering event at some point, but GameStop's stock split isn't it.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The meteoric rise of GameStop (NYSE: GME) stock since late 2020 has drawn its share of detractors. The latest critic is the U.S. House of Representatives, whose Financial Services Committee believes regulators need to tighten rules on so-called "meme stock trading".

It remains unclear if or how much this attention will affect the retail stock. However, GameStop continues to face more pressing challenges that have little to do with Congress or the meme stocks it seeks to target.

The committee and GameStop

Much of the Congressional committee's focus was more directly tied to Robinhood than GameStop. It alleges that Robinhood's platform promoted "game-like" features that encouraged more stock trading.

Still, the committee cited the behavior of GameStop stock as exhibiting this trait. In the case of GameStop, traders leveraged social media to band together to buy the stock and attempt to unwind bets against GameStop by some hedge funds.

Whether these findings will result in additional regulations is not yet clear. Moreover, this has likely become another example of the regulatory framework significantly lagging the behavior of stocks and traders. Hence, it may come too slowly to materially affect GameStop stock.

How GameStop stock has boosted the company

However, GameStop faces more serious challenges from internal forces. Its stock plummeted to penny stock levels in 2020 for business-related reasons. The games it once sold had increasingly moved online, making the existence of GameStop less necessary.

Nonetheless, the meme stock craze sent the stock to record highs. Though it has never returned to the peak of $483 per share in early 2021, its current price of around $130 per share is far above its one-time penny stock status. This has allowed the company to issue shares and raise cash to keep itself afloat.

With the new funding, GameStop worked to revive its business. It closed numerous stores and established an online marketplace to sell game downloads. This made it a one-stop shop for finding games from numerous companies.

Additionally, it has ventured more heavily into new business lines. For one, it entered the collectibles business, which has given it unique goods to sell. It has also made plans to launch an NFT marketplace, though it has released few specifics about the new offering.

The problem with GameStop

Unfortunately, GameStop has chosen to enter the NFT market at a time when interest is fading in NFTs, according to NonFungible, an industry website. This will probably dampen interest in its new offering. Moreover, segments like online games and collectibles do not give GameStop much of a competitive moat. Consumers have numerous choices in either case, and its competitive edge does not appear to extend beyond its name recognition.

Furthermore, the company's financial picture continues to worsen. In Q1, its revenue rose 8% from a year ago to $1.4 billion. Also, faster growth in the cost of sales and selling, general, and administrative expenses dramatically widened operating losses. This took its net loss to $158 million, up from $67 million in the year-ago quarter.

Additionally, the pain will probably continue as video game sales saw a steep decline in May. Analysts are not expecting improvements; they predict 7% revenue growth for the year and widening net losses.

For now, GameStop holds just over $1 billion in liquidity. Still, with losses widening, it may have to return to the capital markets by next year if it cannot maintain its stock price. As its business continues to struggle, the prospects for its recovery appear increasingly uncertain.

Avoid GameStop stock

In the end, the House Financial Services Committee is the least of GameStop's worries. The committee has not responded quickly to the meme stock craze, and any action will probably come too late to affect GameStop.

The more significant concern is the future state of GameStop when that committee acts. The higher stock price has enabled the company to raise more capital and stay afloat for now. Nonetheless, its continuing losses and moves into weak-moat business lines will likely not boost investor confidence.

Admittedly, GameStop has held on to its passionate supporters on social media. They have proven their influence and have made GameStop dangerous to short. But given the poor recovery prospects, investors should consider staying away.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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During the first half of 2021, meme stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC) took the financial world by storm. Individual investors piled into shares of a handful of companies -- particularly beaten-down, heavily shorted stocks -- quickly making huge gains. As the stock prices soared, many of these traders used social media platforms to celebrate and to urge others to continue buying.

Over the past year, though, meme stocks have lost much of their lustre. Indeed, meme stocks' best days are probably behind them. In the long run, they simply cannot escape the underlying companies' poor performance.

Maintaining excitement is hard

The surge in meme stocks last year was surprising, but it wasn't unprecedented. There have been many such stock market 'bubbles' over time. However, these bubbles pop sooner or later.

In the early days of the meme stock craze, watching stocks like GameStop and AMC rocket higher was exciting. As the stocks rose, they gained more mainstream interest, leading to additional buying and even bigger gains.

But as time went by and meme stocks' gains slowed, most investors began to tune out. The resulting stock price declines made meme stocks even less exciting to the average American, as they no longer seemed like a ticket to quick riches.

The need for a devoted band of followers to prop up the share price has already doomed lesser meme stocks. For example, shares of Bed Bath & Beyond, Virgin Galactic, and BlackBerry made big gains during the peak of the meme stock craze. But over the past year, all three stocks have plummeted below pre-pandemic levels.

Three-year performance of selected meme stocks, data by YCharts.

Even AMC stock has risen less than 20% over the past three years, underperforming the broader market. Only GameStop has maintained big gains compared to 2019. And despite being the most popular meme stock, GameStop shares have fallen more than 70% from the all-time high of $483 they reached in January 2021.

A stag hunt doomed to fail

The "stag hunt" scenario from game theory also helps explain why meme stocks are poised for losses over time. In a stag hunt, everyone must work together to achieve the best outcome (capturing a stag). The risk is that some people settle for a sure thing with a smaller reward (catching a hare) and allow the stag to escape.

By acting as a group to buy (and not sell) shares of GameStop, AMC, and other names, meme stock investors generated huge paper profits last year. Even today, meme stock bulls continue to urge other investors to buy and "hold on for dear life" no matter what.

Maintaining this kind of cooperation over time is hopeless, though. Eventually, some people will choose to sell, perhaps to make a big purchase or perhaps simply to take some risk off the table. That's exactly what has happened over the past year, bringing meme stocks back to earth.

No substance to these stocks

Many years ago, investing legend Benjamin Graham aptly described the phenomenon behind meme stocks' performance. According to his most famous student -- Warren Buffett -- Graham said, "In the short run, the market is a voting machine ... but in the long run, the market is a weighing machine."

In other words, at any moment, a stock can be popular or out of favour for no good reason. But over time, a company's fundamental performance (i.e. revenue, earnings, and cash flow) is the main driver of its share price. Meme stock investors are learning this lesson the hard way.

Even at today's levels, shares of GameStop and AMC are extremely overvalued. GameStop is deeply unprofitable and burning cash rapidly. Its main growth initiative -- an NFT marketplace -- seems unlikely to fix things, given that crypto giant Coinbase's NFT marketplace has been a bust. GameStop's intrinsic value is probably closer to $1 billion than its current market cap of $10 billion.

Meanwhile, AMC would have trouble supporting its $5.5 billion debt load even if revenue and earnings returned to 2019 levels. And while theater attendance is improving, revenue remains well below pre-pandemic levels. That makes AMC's $6 billion-plus market cap very hard to justify.

In short, while the past year has been rough for meme stock investors, the future could be even worse, barring an unlikely surge in profits at GameStop and AMC.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Stock splits can be exciting events, right? They certainly draw attention to the splitting company, even if they don't necessarily move the stock price up.

Consider the fates of two would-be splitters, Tesla (NASDAQ: TSLA) and GameStop (NYSE: GME). Since announcing their respective share divisions in late March, the share prices of both have declined (GameStop by 13.2% and Tesla by 9.6%).

But softening share prices can often make companies more attractive. Let's see which of these contenders is the better buy opportunity right now.

A tale of two splitters

Tesla and GameStop aren't directly comparable as businesses, but they do share some similarities. Both have been criticized for the way they operate in the past and both have come close to bankruptcy at various points in their histories. The two companies are also the subject of constant, and sometimes frenzied, online discussion. This somewhat distorts the value of their stocks, as chatter and noise can knock a company's price around quite a bit.

Let's cut through the static and look at the fundamentals of the pair. Both operate in relatively high-cost and low-margin environments. Tesla cars require thousands of components, some rather expensive, and GameStop has to maintain a decent level of inventory and operate and staff brick-and-mortar stores. Earning a buck for the two companies, then, has been a challenge at times.

Electrifying growth for Tesla

Tesla is a recent arrival to the profit garage. Its bottom line has only recently been consistently in the black. It's managed to do this with a laser focus not only on EVs exclusively -- unlike slower-moving, auto-making competitors who are still beholden to the traditional internal-combustion engine -- but also because the "cool factor" is nicely baked into its vehicles. This is especially true with the popular, higher-end offerings such as the Model X SUV.

This is a business model expertly practised by Apple, whose iPhone line of products is still the premium smartphone line of choice for many consumers after 15 years. The beauty of this approach is that quality premium products command higher prices and, all things being equal, produce higher margins for their makers. That was a key factor in Tesla's dramatic lurch into profitability.

This success is combined with heady top-line growth. People want to own next-generation cars and desire to own Teslas. Demand continues to be bodybuilder strong and has helped lift revenue higher. Tesla's full-year 2021 sales were nearly $54 billion, a sky-high 71% improvement year over year.

Is it game on or off for GameStop?

During the coronavirus pandemic, GameStop grew to prominence because of the many online denizens posting feverishly about the company. For a time (and still to some extent these days), it was the company that personified the new term "meme stocks," with the outcome of entire trading days dependent on the tone of online discussions.

This kicked off in late 2020 with the most famous short squeeze in recent history. The shorts were ultimately routed, and GameStop began the roller-coaster ride it's still on today.

To be blunt, it's not a good investment based on the business fundamentals. While GameStop hasn't done badly squeezing out sales growth (18% in full-year 2021) lately, it's a retail dinosaur that usually loses money. Over the past four years, its annual loss has ranged from just under $215 million to nearly $800 million. Zooming in, the past three quarters have seen the flailing company slide increasingly deeper into the red on the bottom line.

And the winner is...

In one corner, we have Tesla as the highest-profitable operator in a red-hot segment in which demand shows no sign of cooling. In the opposite corner stands wobbly GameStop, weakened by a legacy business model that's hard to succeed with today and tough to pivot from. The company's also not a hot prospect to excel with behind-the-trend ventures, such as its recently announced non-fungible token (NFT) platform.

I suppose some argument could be made in favor of GameStop being far cheaper on certain, highly selected valuations. The company's price-to-sales ratio, for instance, stands at less than two, while that of ever-expensive Tesla is a bloated 24-plus.

Then again, Tesla is a zeitgeist company with its best years in front of it. GameStop is a gossip-prone, volatile stock fronting a money-losing business.

There's no real competition here. Admittedly, Tesla's valuations give me pause to think and its top management is a bit flaky for my taste, but it's built a powerful brand and will continue to be a leader in its segment. The EV specialist is unhesitatingly my pick in this contest.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The stock market continued its recovery on Tuesday, with solid gains that suggested investors have gotten past all the uncertainty that has hit Wall Street recently. There hasn't been much resolution to all the headwinds buffeting the business world, but market participants nevertheless seem to believe that the bear market in the Nasdaq Composite (NASDAQINDEX: ^IXIC) and corrections in other indexes have been overblown.

As of 1:30 p.m. ET today, the Dow Jones Industrial Average (DJINDICES: ^DJI) had risen 260 points to 34,831. The S&P 500 (SNPINDEX: ^GSPC) rose 44 points to 4,333, while the Nasdaq had gained 220 points to 14,058.

A couple of stocks stood out as showing new signs of investor enthusiasm from a couple of different angles. Alibaba Group Holding (NYSE: BABA) moved sharply higher, showing renewed interest in Chinese stocks. Meanwhile, GameStop (NYSE: GME) posted a massive advance in a victory for meme stocks. Below, we'll look more closely at the latest from both of these companies.

Alibaba boosts its buyback

Shares of Alibaba Group were up more than 12% in early afternoon trading on Tuesday. The Chinese internet giant made its own big bet on its stock, and investors were eager to ride its coattails. 

Alibaba announced that it would increase the size of its stock repurchase program. Previously, the tech company had authorized $15 billion to buy back stock, but the new authorization expanded that plan to $25 billion. Indeed, today's move marked the second time Alibaba had raised the size of its buyback plans, having started with just $10 billion in December 2020.

Alibaba's past buyback activity hadn't prevented a swoon in its share price up to this point, however. The company's most recent financial results showed that it spent $1.4 billion repurchasing 10.1 million shares in the fourth quarter of 2021, yet shares went on to lose nearly half their value after that report before bouncing back. Even now, share prices are 10% to 20% below the average price Alibaba paid on its repurchases during the last quarter.

U.S. investors remain concerned about whether the Chinese government will continue a harsh regulatory crackdown on Alibaba and its big-tech peers. Nevertheless, with shares at bargain prices, it's been harder to pass up Alibaba than it has been for a long time. 

Winning the game

Meanwhile, shares of GameStop were up nearly 30%. There wasn't any particularly noteworthy news from the meme stock standout today, but after having fallen to its worst levels since its late 2020 breakout, GameStop seemed to have investors focusing on what it hopes will be a promising future.

GameStop's earnings last week didn't generate an immediate turnaround, but investors seem to be looking back and finding reasons for hope from the numbers. Sales were up 6% from the previous year's quarter and rose 18% year over year for the full 12-month period. Even though adjusted losses widened from year-earlier levels, shareholders now seem to be focusing more on the potential for top-line growth.

One thing that could generate some excitement is GameStop's plan to establish a marketplace for non-fungible tokens (NFTs), which have gotten a lot of attention lately. Even as the traditional crypto market has shown signs of slowing down, innovation in the NFT arena has continued at a healthy pace.

Retail investors helped drive GameStop's stock higher in its initial phase upward, and they seem to be behind today's move as well. Those investors can be fickle, but some truly see real potential for GameStop's turnaround story to get a Hollywood ending. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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If you can believe it, it's now one year since the GameStop Corp. (NYSE: GME) short squeeze exploded into the public consciousness.

That episode, which saw shares for the video game retailer rise 1,500% in just a fortnight, brought mainstream attention onto the Reddit forum r/wallstreetbets.

The group plan to buy up GameStop stock to inflate its flagging share price was allegedly hatched in that discussion channel.

The term "meme stock" had well and truly arrived.

Crowd-picking stocks on social media and online chats has become so influential that institutional investors are now reportedly keeping a close eye on these forums.

As such, it's always interesting to keep tabs ourselves.

So let's take a look at the 5 most-discussed stocks on WallStreetBets as of Tuesday January 11 Australian time, thanks to statistics from Swaggy Stocks:

1. Tesla Inc (NASDAQ: TSLA)
2. GameStop Corp
3. Tilray Inc (NASDAQ: TLRY)
4. Invesco QQQ Trust Series 1 (NASDAQ: QQQ)
5. Nvidia Corporation (NASDAQ: NVDA)

Electric cars, cannabis and computer chips

Electric car maker Tesla needs no introduction, and regularly features among the most-discussed shares on Reddit.

After multiplying its share price 8-fold in 2020, punters were certainly interested in whether Elon Musk's company had become overvalued.

The bulls won out in 2021, seeing their shares increase another 50%.

The debate apparently still continues in 2022.

Tilray is a Canadian cannabis company that grows the plant in Canada and Europe and then sells it into the fast-growing US market.

The company listed on the NASDAQ in July 2018 with an initial public offer price of US$17 per share.

Many of those original investors may have left by now, with the share price languishing at US$7.29. It has lost 41% of its valuation just in the past 12 months.

Are the Redditors planning a crowd-induced surge?

Invesco QQQ Trust is an exchange-traded fund that tracks the NASDAQ-100 (NASDAQ: NDX) index.

With a heavy technology bias, the ETF has lost about 4.5% since the start of this year, so there may be some debate on WallStreetBets about buying the dip.

Rounding out the top 5 is chipmaker Nvidia.

Despite its origins in graphics processing units, the company has seen spectacular growth thanks to its innovations in artificial intelligence and data analytics.

Shareholders have enjoyed a marvellous ride, with the Nvidia stock price surging more than 10-fold over the past 5 years.

But despite still doubling over the past 12 months, the stock has cooled considerably in recent weeks. Since 7 December, Nvidia shares have lost 15.5%.

No wonder there is some discussion on Reddit as to whether it's a buying opportunity.

It's worth noting that Reddit is itself planning to list publicly this year, confidentially filing for an initial public offer last month.

No doubt Reddit shares will also make an appearance soon as one of the most-discussed shares.

The post Top 5 stocks mentioned on Reddit's WallStreetBets right now appeared first on The Motley Fool Australia.

Have you checked the returns on your cash holdings lately?

If so, you're likely not jumping for joy.

It's no secret that interest rates have plunged to all-time lows over the past few years. A trend exacerbated by the onset of the global pandemic which saw the Reserve Bank of Australia (RBA) slash the official cash rate to an unprecedented 0.15%.

That's right about in the range of what you can expect from a term deposit, by the way. With shorter-term cash holdings yielding an even more meagre 0.05%.

Those yields were minimal even when inflation was virtually absent. But with consumer prices now rising quickly across the globe, the real (inflation adjusted) returns from cash deposits are well into the negative.

Which brings us to…

Interest paying crypto accounts "a paradigm shift"

Darren Abrams is the chief investment officer of digital currency provider Aus Merchant Investments.

Asked about interest paying crypto accounts, Abrams told the Motley fool, "Yield bearing accounts are a paradigm shift from traditional banking. I believe that this will be the 'killer app' that bridges DeFi [decentralised finance] and mainstream bank users."

Investors should take care to note that these types of yield bearing crypto accounts don't come with the Aussie government's deposit guarantee, as is the case with authorised deposit-taking institutions.

However, with inflation heating up and looking far less transitory than central bankers had hoped only a few months ago, Abrams says:

Applications such as Anchor Protocol (CRYPTO: ANC) offer a 19.5% yield on a USD pegged stablecoin. Compared to the average savings account that pays 0.05% interest, the impetus to utilise this functionality is immense and increasing exponentially as inflation erodes the purchasing power of fiat savings.

Digital assets still trade like risk assets

Having touted the potential game changing nature of interest paying crypto accounts, Abrams cautions that, "Currently, the whole digital asset market trades very much like traditional risk assets."

But he sees that changing for select cryptos over time:

Digital assets have evolved. As such they have a broad array of benefits and negative attributes. Bitcoin (CRYPTO: BTC) – and some other deflationary coins – are essentially the digital versions of hard money and therefore will eventually act as haven assets. Smart contract platforms that facilitate the financialization of the crypto economy are more akin to traditional risk assets.

What about meme crypto assets like Shiba Inu (CRYPTO: SHIB)?

You won't find Abrams lining up to snap up the next 'hot' meme crypto, like Shiba Inu. "As an investor, I see no inherent value in meme coins," he told us.

"However, I understand the power of a sense of belonging, which was clear during the GameStop Corp (NYSE: GME) saga," he added. "Therefore, I believe these meme coins are here to stay. However, I would never advise investing in any of them. If you're unsure, do some further research or seek professional advice before investing."

The post How interest paying crypto accounts could be a gamechanger appeared first on The Motley Fool Australia.

This year kicked off with a bang after a bunch of Americans conspired to plough their money simultaneously into a failing bricks-and-mortar retailer.

Shares for GameStop Corp (NYSE: GME) then surged from US$20 to as high as US$483 in just a couple of weeks.

And with that, the term "meme stock" entered the mainstream lexicon.

There's been a massive influx of new and young stock investors since the COVID-19 pandemic shut everyone in at home last year. 

Add to that the share market's spectacular recovery from the March 2020 crash and it's not entirely a surprise that there is a crowd always seeking to jump on the next moonshot stock.

But, according to one expert, it's now time to take a cold shower.

Watch out, it's 2017 all over again

Forager Funds chief investment officer Steve Johnson said that his funds, including the Forager Australian Shares Fund (ASX: FOR), had a fantastic time enjoying the fervour for ASX shares in recent times.

"For us, being agile, open-minded and willing to be contrarian was more important than ever last year. It allowed us to invest in a collection of unloved businesses at once-in-a-lifetime prices," he wrote in Money magazine.

"And it paid off. The 2021 financial year was the best on record for Forager across both our Australian Shares Fund and International Shares Fund."

But ASX shares were now entering a different era, and the familiar indicators have Johnson worried.

"Right now, interest rates remain at record lows, stock markets are trading at all-time highs, people are inventing new metrics like revenue multiples to justify absurd prices for growth stocks, inflation is becoming a serious concern and COVID resurgences are weighing on the economic recovery," he said.

"More importantly, there are very few pockets of undue pessimism."

The conditions remind Johnson of 2017 when his funds tried to keep looking for hidden gems — then ate humble pie for 2 years.

So faced with the same situation now, he calls on investors to get serious.

"It is time, once again, to be thinking about the benefits of safe and boring," Johnson said. 

"Once again, like 2017, investor obsession with hyper-growth and high returns has left some of these stocks neglected."

Your ASX shares don't always have to stand out

According to Johnson, his team learned an important lesson from the difficult 2018-2019 period.

"You don't always need to be doing better than the crowd," he said.

"There is a time and place for contrarian bets. And there's a time for playing it safe."

Counterintuitively, taking a simple investment strategy is not actually that easy after a period of finding shooting stars.

"To turn to our loyal client base and say 'you know how we look for opportunity in unlikely places? Well, we just bought Downer EDI Limited (ASX: DOW)'," said Johnson.

"That doesn't sit well with how we view ourselves or what our clients have come to expect. And that's what makes it so hard."

The post Investor warning: Time for sensible and 'boring' ASX shares appeared first on The Motley Fool Australia.

The electric vehicle and battery maker, with a market cap of some US$784 billion (AU$1.07 trillion) once again took top spot for most held shares by Aussie (and global) investors on eToro's investment platform.

We take a closer look at Tesla and the other 4 top held shares below.

But first…

What did eToro's top held shares list reveal?

One thing that jumps out from the top 5 held shares is that they can all be labelled as growth stocks. In fact, 9 of the 10 top held shares on the eToro platform in the past quarter ending 30 September were growth stocks.

On the surface that may be surprising, as more economists are beginning to suspect that the boost in inflation hitting much of the world might not be quite as transitory as they'd been hoping. Meaning the odds of earlier and potentially larger interest rate hikes from the world's central banks is increasing.

Higher rates could impact shares like tech companies, which are often priced with future earnings growth in mind. However, investors appear to be shrugging off those fears.

According to eToro's global markets strategist, Ben Laidler:

The fact that growth – and in particular big tech – stocks increasingly dominate portfolios suggests two things: firstly, that investors believe interest rate rises will be slow and steady; and, secondly, that they believe there is still plenty of mileage in growth stock earnings.

With that said, here are the top 5 shares held by Aussie investors in the quarter just gone by.

Tesla takes the cake

As mentioned up top, Elon Musk's brainchild Tesla, held onto its top spot for most held shares.

Commenting on Tesla's resilience among investors, eToro's Australian market analyst Josh Gilbert, said:

Australian investors are clearly passionate about investing in EVs, with Tesla once again dominating the local rankings. Despite Tesla's performance being quite lacklustre at the beginning of 2021, Australian investors have renewed their optimism after the company announced its latest Q2 earnings in Q3 2021.

The report demonstrated vehicle deliveries were up 122 per cent year-over-year, gross margins were continuing to swell and most importantly, guidance was strong for the rest of the year.

Staying with the tech theme but moving away from Tesla and EVs, the number 2 most held share by Aussie investors last quarter was Apple Inc (NASDAQ: AAPL), with a mind-boggling market cap of some US$2.4 billion.

Apple moved up from fourth spot in Q2.

According to Gilbert:

We can also see that Australian investors have increasingly favoured the defence end of tech with names such as Apple and Microsoft [the number 8 holding]. The balance sheets that these names possess can help Australian investors weather most market storms, whilst also finding growth in the tech space.

Coming in at number 3 for Q3 was fellow electric vehicle maker, Chinese company Nio Inc (NYSE: NIO), which held the number 2 spot in the previous quarter.

Indeed, investors appear well attuned to the continuing growth potential of the EV market. And for good reason. EV sales in the first half of 2021 were almost 3 times the number in the first half of 2020, and made up some 7% of all car sales.

Rounding out the list we have GameStop Corp. (NYSE: GME) as the fourth most popular share among Aussie investors. That's down one spot from the number 3 most popular share it held in the second quarter of 2021.

And Amazon.com, Inc. (NASDAQ: AMZN) came in at number 5, up 1 place from the number 6 spot it held in Q2.

Will Tesla remain king of the hill in the current quarter or will it be unseated?

Stay tuned.

The post Top 5 global shares held by Aussie investors in Q3 revealed: eToro appeared first on The Motley Fool Australia.

Most weeks, Commonwealth Bank of Australia's (ASX: CBA) brokerage platform CommSec releases the most popular international shares (which are almost always US shares) that its Aussie users were trading over the previous week.

CommSec is one of the most popular brokers in the country. As such, this information gives us a useful insight into the US shares ASX investors are currently finding interesting.

So here are the top 10 US shares from CommSec last week. This week's data covers 30 August to September 3.

Tesla back on top

1. Tesla Inc (NASDAQ: TSLA) – representing 3.2% of total trades with a 57%/43% buy-to-sell ratio.
2. Alibaba Group Holding Ltd (NYSE: BABA) – representing 2.8% of total trades with an 84%/16% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.5% of total trades with a 71%/29 buy-to-sell ratio.
4. GameStop Corp (NYSE: GME) – representing 2.2% of total trades with an 82%/18% buy-to-sell ratio.
5. Microsoft Corporation (NASDAQ: MSFT) – representing 1.4% of total trades with an 85%/15% buy-to-sell ratio.
6. NVIDIA Corporation (NASDAQ: NVDA)
7. Zoom Video Communications Inc (NASDAQ: ZM)
8. Alphabet Inc Class C (NASDAQ: GOOG)
9. Amazon.com, Inc. (NASDAQ: AMZN)
10. Lucid Group Inc (NASDAQ: LCID)

What can we learn from these trades?

Last week, we discussed the emergence of Chinese e-commerce giant Alibaba into the top spot on this list. Well, this week, Alibaba is still popular, but it's the Elon Musk-headed electric battery and vehicle manufacturer Tesla that takes out the top spot. Although saying that, investors appear pretty divided on what to do with their Tesla shares, seeing as the buy/sell ratio was at 57%/43%.

Tesla has been climbing in recent weeks, going from around US$665 on 17 August to US$753.87 as of last night (up 13.2%). Perhaps some investors are taking some profits off the table here.

But Alibaba is still in the number 2 spot this week and has a far more enthusiastic buy/sell ratio at 84%/16%. The Alibaba share price has continued to fall in recent weeks after a disappointing year in 2021 so far. The company hit a new 52-week low around a fortnight ago, so this might have tempted some bargain hunters to come out of the woodwork.

In other news, we still see sustained demand for the big US tech blue chips like Apple, Microsoft, Amazon, and Alphabet.

Zoom is an interesting addition though. This company has also taken a hit in recent weeks and is down more than 15% since last Monday (30 August). Clearly, we also see some bargain hunting going on here, judging by Zoom's 72%/28% buy/sell ratio.

And finally, we still see an appetite for the 'meme stocks' like GameStop and Lucid Group. Some 82% of trades were buys with GameStop, so there must still be some appetite for the kind of 'pops' this company has now become known for.

The post Here were the most popular US shares for ASX investors last week appeared first on The Motley Fool Australia.

Most weeks, Commonwealth Bank of Australia (ASX: CBA)'s share trading service CommSec tells us the most popular US shares that its Australian user base has been buying and selling over the previous week.

Since CommSec is one of the most widely used brokers in Australia, this trading data gives us an interesting window into what kinds of US shares Aussie investors are taking a closer look at.

So here are the top 10 US shares from CommSec last week. This week's data covers 23-27 August.

Alibaba shoots to the top of the pile

1. Alibaba Group Holding Ltd (NYSE: BABA) – representing 3.9% of total trades with an 86%/14% buy-to-sell ratio.
2. Tesla Inc (NASDAQ: TSLA) – representing 3.2% of total trades with a 65%/35% buy-to-sell ratio.
3. GameStop Corp (NYSE: GME) – representing 2.9% of total trades with a 78%/22% buy-to-sell ratio.
4. Apple Inc (NASDAQ: AAPL) – representing 2.7% of total trades with a 74%/26% buy-to-sell ratio.
5. Microsoft Corporation (NASDAQ: MSFT) – representing 1.9% of total trades with an 86%/314% buy-to-sell ratio.
6. Pfizer Inc (NYSE: PFE)
7. NVIDIA Corp (NASDAQ: NVDA)
8. Amazon.com, Inc. (NASDAQ: AMZN)
9. AMC Entertainment Holdings Inc (NYSE: AMC)
10. Alphabet Inc Class C (NASDAQ: GOOG)

What can we learn from these trades?

Chinese e-commerce giant Alibaba has shot to the top of the pile as CommSec's most popular share last week. The Chinese behemoth behind Alipay, AliExpress, and Ant Financial took home a total of almost 4% of all CommSec international trades last week.

It even pipped the perennially popular Tesla, the electric car and battery manufacturer helmed by Elon Musk. What's more, an overwhelming majority of 86% of all trades were on the buy side.

It's not hard to see why ASX investors might have suddenly developed an appetite for Alibaba shares. This company has been on a steep decline all year, losing around 24% of its value over 2021 so far. Alibaba is also down more than 44% from its all-time high from October last year. It seems a number of Australian investors are sensing a bargain buy here.

In other news, we still see enduring demand for shares like GameStop and AMC, long held up as examples of 'meme stocks'. GameStop shares are now up almost 40% over just the past fortnight, so it's easy to see where this optimism is coming from.

We also see continuing interest in the big tech blue-chip shares like Apple, Microsoft, Amazon, and Google-parent Alphabet. These companies have generally been hitting new all-time highs of late, but that's nothing new for the FAANGs.

Finally, it's interesting to see vaccine maker Pfizer here too. With 86% of trades on the buy side, it seems some investors may be so inspired by a recent vaccine that they have been compelled to invest in the company too.

The post ASX investors were buying Alibaba, Pfizer shares last week appeared first on The Motley Fool Australia.

CommSec is one of the most popular brokers in Australia. Because of this, CommSec's trading data gives us a useful insight into the US shares that ASX investors are finding interesting right now. 

So here are the top 10 international shares that CommSec-ers were trading last week. This week's data covers 2-6 August.

Robinhood and Square make their presence known to ASX investors

1. Tesla Inc (NASDAQ: TSLA) – representing 3.7% of total trades with a 60%/40% buy-to-sell ratio.
2. GameStop Corp. (NYSE: GME) – representing 2.9% of total trades with a 93%/7% buy-to-sell ratio.
3. Amazon.com, Inc. (NASDAQ: AMZN) – representing 2.5% of total trades with an 86%/14% buy-to-sell ratio.
4. Apple Inc (NASDAQ: AAPL) – representing 2.4% of total trades with a 65%/35% buy-to-sell ratio.
5. Robinhood Markets Inc (NASDAQ: HOOD) – representing 1.9% of total trades with a 72%/28% buy-to-sell ratio.
6. Square Inc (NYSE: SQ)
7. AMC Entertainment Holdings Inc (NYSE: AMC)
   
8. Advanced Micro Devices, Inc. (NASDAQ: AMD)
9. Moderna Inc (NASDAQ: MRNA)
10. Alibaba Group Holding Ltd (NYSE: BABA)

What can we learn from these trades?

We see some interesting movements in this week's list. Firstly, it's worth noting that the perenially popular shares of Tesla and GameStop remain at the top of this pile, cementing a trend we have pretty much seen all year. Investors remain super-bullish on these two companies as well, in particular with GameStop. A staggering 93% of all GameStop trades on CommSec last week were on the buy side, despite the fact that this original 'meme stock' has slid around 15% over the past month or so.

Tesla also remains popular, albeit less so than GameStop. Tesla shares are up roughly 10% since the start of the month, which may be influencing trading activity here.

But turning to other news, and it was interesting to see e-commerce giant Amazon climb into the top 5 shares this week. Amazon is a regular feature on this list, but usually occupies a spot at the bottom of the table when it does turn up. Perhaps a rare share price pullback in Amazon shares (the company is down more than 10% over the month just passed) is to thank for this.

We also see a strong appetite for US share market newcomer Robinhood. Robinhood had an explosive IPO late last month, rising from around US$35 a share to US$85 by last Wednesday. The company is back down to the mid-US$50 range as it stands today.

And finally, it's also worth noting the presence of Afterpay Ltd's (ASX: APT) potential new overlord Square. Like Amazon, Square is a company that has turned up at the bottom of this table before, but its new presence in the ASX investor's mind looks to have boosted its profile. Square's commitment to list on the ASX if its acquisition of Afterpay goes through may also be at play here.

The post ASX investors were buying Robinhood, Square shares last week appeared first on The Motley Fool Australia.

Since CommSec is one of the most popular brokers in Australia, this information can give us a very interesting idea of the US shares that ASX investors are looking at today.

My Fool colleague James already looked at some of the most popular ASX shares yesterday. So here are the top 10 US shares that CommSec users were trading last week. This week's data covers 19-23 July.

ASX investors checking out some new shares

1. Tesla Inc (NASDAQ: TSLA) – representing 3% of total trades with a 64%/36% buy-to-sell ratio.
2. Apple Inc (NASDAQ: AAPL) – representing 2.9% of total trades with a 60%/40% buy-to-sell ratio.
3. GameStop Corp. (NYSE: GME) – representing 2.4% of total trades with a 93%/7% buy-to-sell ratio.
4. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.2% of total trades with a 75%/25% buy-to-sell ratio.
5. NVIDIA Corporation (NASDAQ: NVDA) – representing 2.1% of total trades with a 92%/8% buy-to-sell ratio.
6. Microsoft Corporation (NASDAQ: MSFT)
7. Moderna Inc (NASDAQ: MRNA)
8. DiDi Global Inc (NASDAQ: DIDI)
9. Alibaba Group Holding Ltd (NYSE: BABA)
10. Alphabet Inc Class C (NASDAQ: GOOG)

What can we learn from these trades?

Some interesting numbers to go through this week. So, the top three usual US shares are all here again this week in Tesla, Apple and GameStop.

However, Tesla is back on top after coming in at number 3 last week. Likewise, GameStop is back to number 3 after topping out last week's list.

What's particularly striking about these 3 companies is their buy-/sell ratios. Investors seem equally divided on both Tesla and Apple, with rough 60/40 ratios respectively for buy and sell trades.

However, the GameStop ship is listing heavily towards the buys, with an astonishing 93% of all trades on the buy side. GameStop shares appreciated roughly 15% between 15 and 20 July so perhaps this is what's sparking this activity.

Other than those regulars, we have some new shares that haven't turned up on this list for a while. This includes COVID vaccine developer Moderna, as well as China ride-hailing share DiDi and Google parent company Alphabet.

Finally, it's worth noting chipmaker NVIDIA's presence. NVIDIA was on last week's list at number 6 but makes the top 5 cut this week with another uber-bullish buy-sell ratio of 92/8.

NVIDIA shares went through something of a correction earlier this month, falling more than 12% between 6-16 July leading up to a 4-for-1 stock split on 20 July.

It seems this dip really caught ASX investors' attention. NVIDIA shares are up a mind-blowing 1,245% over the past 5 years alone.

The post Here are the US shares ASX investors were buying last week appeared first on The Motley Fool Australia.

CommSec is one of the most widely used brokers in Australia. Because of this, this data can give us a valuable window into the US shares that ASX investors are finding enticing. So here are the top 10 US shares that CommSec-ers were buying and selling last week. This week's data covers 12-16 July.

Nothing can keep GameStop down

1. GameStop Corp. (NYSE: GME) – representing 3.3% of total trades with an 89%/11% buy-to-sell ratio.
2. Apple Inc (NASDAQ: AAPL) – representing 3.2% of total trades with a 72%/28% buy-to-sell ratio.
3. Tesla Inc (NASDAQ: TSLA) – representing 2.9% of total trades with a 61%/39% buy-to-sell ratio.
4. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2.5% of total trades with a 65%/35% buy-to-sell ratio.
5. Virgin Galactic Holdings Inc (NYSE: SPCE) – representing 1.6% of total trades with a 49%/51% buy-to-sell ratio.
6. NVIDIA Corporation (NASDAQ: NVDA)
7. Microsoft Corporation (NASDAQ: MSFT)
8. Amazon.com, Inc. (NASDAQ: AMZN)
9. Nio Inc. (NYSE: NIO)
10. Alibaba Group Holding Ltd (NYSE: BABA)

What can we learn from these trades?

That the meme is strong for one. Yes, 'meme stock' king GameStop is back at the top of this pile, displacing the giant Apple as well as perennial ASX favourite Tesla. Even more interestingly, 89% of GameStop trades last week were in the 'buy' column.

This coincides with GameStop shares hitting their lowest level since May recently. Clearly, there are more than a few investors hoping for another one of those lucrative 'pops'.

We see a less-enthusiastic commitment to other meme stocks like AMC, Nio and Virgin Galactic. Although, in saying that, Virgin Galactic investors appear to be more inclined to bail out than buy more, with 51% of trades in the 'sell' column.

Ever since Sir Richard's successful space flight earlier this month, investors have been stampeding to the exits. Since 8 July (3 days before the flight), Virgin Galactic shares have lost more than 38% of their value. Imagine what would have happened if it wasn't a successful flight!

We still see bubbling affection for the US big tech blue chips like Apple, Amazon and Microsoft. Apple in particular maintains a dominant position in this week's numbers, even pipping Tesla with its 72% 'buy' bias.

This week's report also marks the return of chipmaker NVIDIA after a few weeks' absence. NVIDIA has been on an exceptional run lately, rising roughly 50% between 13 May and 6 July. That's a pretty significant move from what is now a company with a market capitalisation of US$468 billion.

The post ASX investors were buying GameStop (NYSE:GME) shares last week appeared first on The Motley Fool Australia.

Since CommSec is one of the most widely used brokers in Australia, this information can give us an interesting window into what ASX investors are finding exciting over in the USA right now. My Fool colleague James has already taken a look at CommSec's most popular ASX shares today. But here are the top 10 US shares that CommSec users were trading last week. This week's data covers 5-9 July.

Tesla in the driving seat, but Apple looking sweet

1. Tesla Inc (NASDAQ: TSLA) – representing 3.5% of total trades with a 67%/33% buy-to-sell ratio.
2. Apple Inc (NASDAQ: AAPL) – representing 2.8% of total trades with a 55%/45% buy-to-sell ratio.
3. GameStop Corp. (NYSE: GME) – representing 2.6% of total trades with a 93%/7% buy-to-sell ratio.
4. Alibaba Group Holding Ltd (NYSE: BABA) – representing 2% of total trades with a 79%/21% buy-to-sell ratio.
5. AMC Entertainment Holdings Inc (NYSE: AMC) – representing 2% of total trades with a 66%/44% buy-to-sell ratio.
6. Microsoft Corporation (NASDAQ: MSFT)
7. Amazon.com, Inc. (NASDAQ: AMZN)
8. Nio Inc. (NYSE: NIO)
9. Virgin Galactic Holdings Inc (NYSE: SPCE)
10. Alphabet Inc Class C (NASDAQ: GOOG)

What can we learn from these trades?

That old habits die hard. Last week, we saw Nasdaq newcomer DiDi Global Inc (NYSE: DIDI) make an appearance here after its recent IPO.

Well, this week, we saw the old favourites of ASX investors reclaim their dominance. Electric vehicle and battery manufacturer Tesla is back on top, with investors going from a pretty even buy/sell split last week to decidedly biased towards the buy side this week. That coincides neatly with an 11% increase in the Tesla share price over the past month.

Apple also climbs from 5th spot last week to number 2 this week. Unlike Tesla though, investors are still pretty split down the middle when it comes to buying and selling.

In other news, we see many of the same faces returning. 'Meme stocks' like Nio, AMC and GameStop remain popular, as do the US tech blue chips like Apple, Microsoft and Alibaba (which is actually a Chinese company, but US listed). In that vein, we also see the return of Amazon and Google-parent Alphabet after a few weeks' absence.

It's interesting to note that Virgin Galactic retains its presence after several weeks of obscurity prior to last week. Perhaps Sir Richard Branson's well-publicised space flight the other day has inspired some investors.

The post ASX investors were buying Tesla and Apple shares last week appeared first on The Motley Fool Australia.

The spot in question comes from the list of favourite international shares held by Australian retail investors. A list put together from global user data by the global multi-asset investing platform eToro.

Apple, in fact, dropped from first place in the previous quarter to fourth spot in Q2 2021.

Coming in at number 2 for the quarter just gone by is Tesla's fellow electric vehicle (EV) maker and Chinese rival Nio Inc. (NYSE: NIO). Nio moved up from ninth most favourite international share in the previous quarter.

Why Aussie investors are increasingly interested in Tesla

Australian investments in Tesla increased 4% compared to the prior quarter, while Aussie investments in Nio fell 8%.

According to Josh Gilbert, eToro's Australian market analyst:

Tesla and Nio have both been the 2 most prominent stocks for Australian investors over the last six months. We can see that Australian investors are adapting to a long-term buy-and-hold strategy with both these assets, anticipating that the EV space will dominate the automotive industry for many years to come.

Tesla has slightly more skin in the game than Nio, and that's why Australian investors are opting for Tesla shares right now.

What other international shares are attracting Australian investors?

Atop Tesla, Nio and Apple, the 7 other shares making the top-10 list in Q2 2021 are:

• GameStop Corp. (NYSE: GME) – moving to number 3 spot, from 259 the previous quarter
• Palantir Technologies Inc (NYSE: PLTR) – making the list for the first time at number 5
• Amazon.com, Inc. (NASDAQ: AMZN) – up to number 6 from number 4 in Q1
• BioNano Genomics Inc (NASDAQ: BNGO) – also not on the list in Q1, now at number 7
• Microsoft Corporation (NASDAQ: MSFT)
• AMC Entertainment Holdings Inc (NYSE: AMC), and
• Alibaba Group Holding Ltd (NYSE: BABA)

Investors shrugging off inflation fears

There's been a lot of ink spilled in the financial media about the looming rise of inflation. This would see central banks raise interest rates and, with the end to easy money, could put a crimp in share market performance.

Commenting on investor's inflation concerns, eToro's Global Markets Strategist, Ben Laidler said:

Tesla's and Nio's enduring popularity suggests investor confidence in the electrical vehicle sector as a long-term investment opportunity, despite fears over a prolonged inflationary period. The fact that Apple, Microsoft and Palantir also remain in the top 10 most held stocks on eToro also suggests that investors believe the recent bout of inflation may be temporary.

Laidler added:

Investors are currently facing a lot of uncertainty but our data shows that they seem to be sticking to their long-term strategies. We may start to see more investors diversify their holdings if central banks such as the Federal Reserve, Bank of England and European Central Bank change their tune on inflation.

How has the Tesla share price moved this year?

Tesla tops the list of favourite international shares for Aussie investors in Q2 despite shares in the EV pioneer falling 7% this calendar year.

Still, Tesla's shares have gained 147% over the past 12 months. And the past month's price moves suggest a possible turnaround, with shares up 12% since 7 June.

The post Australia's favourite international shares? Tesla (NASDAQ:TSLA) tops the list appeared first on The Motley Fool Australia.