Markets
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Luke Kawa
9/4/25

Retail traders are buying the dip in Nvidia and selling the rip in Google

As many tech companies hit the skids in the sessions following the release of Nvidia’s second-quarter earnings, retail traders stepped up to make their most purchases of US single stocks in two months, per JPMorgan.

Retail traders bought $1.4 billion in US single stocks in the five sessions ended September 3, according to strategists led by Arun Jain — with nearly all of the net buying ($1.2 billion) in the $4 trillion chip designer. Tesla and Palantir were No. 2 and No. 3, respectively, on the retail-buying leaderboard. But even the combined retail purchases of those two stocks were only a little more than half of what was seen in Nvidia.

However, the persistent selling that’s pushed shares of the world’s most valuable company below its 50-day moving average seems to be fraying retail’s patience with buy-the-dip strategies.

“While NVDA was still a favorite this week (+$1.2 billion), retail investors’ post-earnings enthusiasm soon faced exhaustion as the stock continued to underperform, with daily purchases declining from $444 million on Aug 28th to $146 million yesterday [Tuesday] and $75 million today [Wednesday],” the JPMorgan analysts wrote.

Meanwhile, retail traders were sellers of the biggest one-day gain in Alphabet since April 9 (the session when US President Donald Trump watered down reciprocal tariffs), with the search giant bolstered by a court ruling in which it avoided worst-case scenarios and had its operational status quo more or less reaffirmed. $154 million in Alphabet was sold by retail, on net, which JPM noted is nearly 3 standard deviations worse than the typical activity from this cohort. Apple, which was also buoyed by the court ruling, saw $190 million in net sales over the past five sessions, an amount not that much below average, per JPM’s calculations.

Retail imbalance in Alphabet
Source: JPMorgan Equity Strategy & Quantitative Research

[Disclosure: I own some Alphabet stock, but it’s not enough to change my life even if it duodecupled.]

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Luke Kawa
9/5/25

Robinhood, AppLovin, and Emcor pop on announcement of addition to S&P 500

Shares of Robinhood Markets, AppLovin, and Emcor are all rallying in post-market trading on Friday upon news that they’re being added to the S&P 500.

Shares of the brokerage popped 7.2%, the adtech company rose 7.8%, and the construction company was up a more modest 2.7% in the minutes following the announcement.

(Robinhood Markets, Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Strategy, another stock rumored to be in the running for inclusion in the benchmark US stock index that has been passed over, sank 2.5% in postmarket trading.

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Kenvue plunges after reports suggest RFK Jr. may try to link prenatal Tylenol use to autism

Kenvue sank 15% Friday after a WSJ report said Health and Human Services Secretary Robert F. Kennedy Jr. may attempt to link prenatal Tylenol use to autism in an upcoming government report.

Kenvue, the maker of Tylenol and formerly a division of Johnson & Johnson prior to a 2023 spin-out, pushed back, saying the science shows “no causal link” between acetaminophen use during pregnancy and autism, and pointed to FDA and medical groups that agree on the drug’s safety.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

The FDA itself has found no “clear evidence” of harm but advises pregnant women to consult providers before taking OTC meds.

The report is also expected to float a folate-derived therapy as a potential treatment.

Tylenol is just the latest well-established medication to face scrutiny under Kennedy, who has already stirred controversy by reshaping vaccine policy and amplifying doubts about mRNA shots.

Kenvue shares are now down over 18% year-to-date.

markets

Lucid surges following 6 days of losses after headlines misidentify Cantor Fitzgerald’s lower split-adjusted price target as a good thing

It’s been a shortened week, but still a rough one for Lucid. Investor blowback to the luxury EV maker’s 1-for-10 reverse stock split has sent shares to all time lows this week.

After six straight days of closing lower, Wall Street appears to have decided enough is enough and is loading up on Lucid shares on Friday, sending them up 13% in recent trading. As of 2:10pm eastern, Lucid trading volumes were at more than 240% of their 30 day average.

Some of the move could be attributed to traders reading headlines that don’t take into consideration Lucid’s reverse split. Cantor Fitzgerald on Friday slapped a new price target on Lucid of $20, compared to its previous target of $3. Some news outlets (not us!) presented that as an increase. The problem: With the 1-for-10 reverse split in effect, a comparable price target would have been $30. The new $20 target is actually... a cut.

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Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.