French Optimism About the Stock Market: Tesla Tops the List of Favorite Stocks

According to eToro’s latest Retail Investor Beat quarterly report, French retail investors are feeling confident about 2025. A majority of them expect the bull market to continue and rank Tesla as their top pick among the “Magnificent 7” stocks. This report, based on a survey of 10,000 investors across 12 countries, highlights significant trends and strategic adjustments for the coming year.

A Bull Market Still Expected in 2025
53% of French retail investors believe the currentbull market will continue throughout 2025, a sentiment shared by 59% of investors globally. This confidence is partly based on the strong performance of artificial intelligence-related stocks, which 51% of respondents expect to continue growing. Among them, 8% expect a sharp rise in prices, while 43% anticipate more gradual increases.

Tesla, Apple, and Amazon: The Favorites Among the “Magnificent 7”
When asked about their investment plans regarding the“Magnificent 7”—Tesla, Apple, Amazon, Nvidia, Alphabet, Microsoft, and Meta—French investors overwhelmingly favored Tesla, with 15% of them planning to invest more in the company by 2025. Tesla’s popularity is driven by the automaker’s innovation and its stock market rebound since the U.S. presidential election.
 

Apple (14%) and Amazon (13%) rank second and third, while Nvidia (6%), Alphabet (8%), Microsoft (6%), and Meta (7%) round out the list. The data also reveals gender differences: women are more likely to favor Apple and Amazon, while men predominantly opt for Tesla.

Donald Trump’s Re-election: Adjusted Strategies
Donald Trump’s re-election as President of the United States has prompted 44% of French investors to review their portfolios. Among them, 76% are increasing their exposure to cryptoassets, reflecting growing confidence in this asset class, bolstered by Trump’s pro-crypto stance. U.S. stocks (48%) and cash (38%) are also among the preferred allocations.
 

Sam North, an analyst at eToro, explains: “Donald Trump’s reelection introduces a new dynamic for investors. The increase in crypto asset allocations reflects growing confidence in their potential, while the rise in cash holdings—in line with Warren Buffett’s strategy—reflects caution in the face of political and macroeconomic uncertainties.”
 

Cautious Confidence for 2025
While French investors’ optimism is undeniable, it is accompanied by a nuanced strategic approach. Investment choices for 2025—notably the growing popularity of cryptoassets and the focus on the “Magnificent 7”—reflect adjustments to global economic and political developments. For individual investors, 2025 could be a year of transition, balancing confidence in the bull market with vigilance regarding potential risks.
 

(Source: eToro, Retail Investor Beat report, December 2024)