So here’s what happened: Last week, software stocks got absolutely demolished. We’re talking historic wipeout levels – the kind of carnage that makes even seasoned traders reach for the antacids. But while Wall Street was having its collective panic attack, retail traders were apparently sitting there like, “Sweet, everything’s on sale!”
JPMorgan just dropped some fascinating data on what the Reddit crowd and other retail investors were actually doing during the chaos. Spoiler alert: They were buying. A lot.
The Great Dip-Buying Spree of 2026
Here’s the timeline that’ll make you either laugh or cry, depending on your portfolio: On February 5th, retail buying hit rock bottom – literally the lowest point of the year. But then? From February 6th to 11th, these absolute legends came roaring back, buying above their daily average for 2026.
The interesting twist? They weren’t just picking individual stocks like they’re playing darts. Nope, they went heavy on ETFs this time. Smart move, honestly – when everything’s burning, sometimes you want the whole fire department, not just one truck.
Microsoft: The Chosen One
While software stocks were getting treated like yesterday’s leftovers, retail traders zeroed in on Microsoft like it was the last slice of pizza at a college party. JPMorgan even called it one of their “AI-Resilient” picks, which is basically Wall Street speak for “this one might not completely implode.”
Other retail favorites included Palantir (because apparently everyone loves a good data analytics story) and AppLovin (mobile gaming for the win). Meanwhile, they were dumping Salesforce, Roper Technologies, and Intuit faster than you can say “overvalued.”
Big Tech Earnings: Buy the Fear
When Amazon and Alphabet reported their earnings and Wall Street freaked out about AI spending (again), retail traders saw opportunity where institutions saw danger. They bought Amazon and Alphabet’s post-earnings dips while completely ignoring Meta’s rally.
It’s like they have a sixth sense for contrarian plays, or maybe they just really enjoy buying when everyone else is selling. Either way, it’s working out better than most hedge fund strategies lately.
The David vs. Goliath Showdown
Here’s where it gets spicy: JPMorgan flagged some stocks where retail traders are buying heavily while hedge funds are shorting aggressively. It’s like watching a financial cage match.
Hims and Hers (the telehealth company) and MicroStrategy (the Bitcoin-obsessed business intelligence firm) are caught in this tug-of-war. When retail and institutional money disagree this dramatically, things tend to get… interesting.
The Bottom Line
While professional investors were busy overthinking every AI announcement and quarterly report, retail traders kept it simple: good companies at cheaper prices = buy. Revolutionary stuff, right?
Sure, they might not have Bloomberg terminals or armies of analysts, but they’ve got something else: the willingness to buy when everyone else is running for the exits. And honestly? In a market that’s been this volatile, that might just be the edge they need.
The moral of the story? Sometimes the smartest move is the most obvious one. When quality stocks go on sale, you buy them. Who knew retail traders would be the ones to remind Wall Street of this basic principle?