Investors ditched Meta stock and Apple during a volatile February, but they loaded up on Tesla as shares sank for much of the month. The latest trading report from stock brokerage Charles Schwab shows Tesla stock was their top pick for the month, and other consumer and technology stocks were popular as well.
Overall, Schwab investors were net buyers in a month in which the stock market initially rallied but ended sharply lower. Investor concerns increased over President Donald Trump's tariff policies, weaker consumer sentiment and disappointing jobs data, according to the latest Schwab Trading Activity Index report, released on Monday.
An ongoing rotation away from the tech sector deepened last month. Investors also sold out of communication services and consumer discretionary. They flocked to the more defensive materials sector and also sought out financials due to a steeper yield curve.
Tesla Stock Was No. 1 Buy Last Month
In February, Tesla stock was the No. 1 net buy among Schwab's clients. The U.S. EV giant drew buyers amid weakness for its shares, the trading activity report found. European sales fell sharply for Tesla and CEO Elon Musk's role in the new Trump administration stirred some controversy.
Along with Tesla, top stock buys for investors in February included Palantir, Amazon and Alphabet. Investors also snatched up Microsoft and AMD, which had sold off hard late last year.
Palantir reported AI-fueled earnings in early February. Amazon and Alphabet saw net buying despite disappointing earnings across the cloud sector. Google-parent Alphabet was attractively valued as well.
Meta Stock Was No. 1 Sell In February
However, Schwab investors also dumped a lot of technology stocks. Meta stock was their No. 1 net sell. The Facebook, Instagram and WhatsApp parent fell in mid-February, after a 20-day rally. "Clients took profits and de-risked," the trading activity report said.
The top sells for the month also included Apple, Super Micro Computer and Intel. "Selling in Apple started once our trader clients noticed that shares hadn't taken out post-earnings highs," said Joe Mazzola, head trading and derivatives strategist at Schwab.
Super Micro faced and eventually averted a Nasdaq delisting. Intel rattled investors by ousting its CEO.
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Mixed News For Nvidia Stock, A 2024 Top Five
Trade tidings were mixed for Nvidia in February. Schwab investors made Nvidia stock both a top-three net sold stock and a top-three net bought stock. Despite soaring AI-fueled earnings growth, Nvidia disappointed investors with its "projection for lower margins this quarter as it continues to bring its new Blackwell AI platform online," the trading activity report said.
In 2024, Nvidia was a top-five buy among Schwab's clients, along with Palantir, Amazon, AMD and Microsoft.
The Schwab Trading Activity Index ended last year at 51.16, dipped to 49.45 in January and rose to 51.94 in February. Also known as STAX, the proprietary index analyzes the activity in the millions of trading accounts held with Schwab to track the sentiment of retail investors.
A rising score may mean investors are getting more bullish. A falling score may mean investors are getting bearish, or at least less bullish than before, Schwab says.
The STAX index "grew choppy in early 2025 as the second Trump administration's economic policies created market uncertainty," Schwab said.
Nvidia stock rebounded 6.4% to 115.74 on the stock market today. On Tuesday, shares neared September 2024 lows after slumping year to date.
Please follow Aparna Narayanan on X @IBD_Aparna for more coverage.
