Dan Ives Analysis: Retail Investors' Growing Market Influence and Impact on Tech Stocks

This analysis is based on Wedbush analyst Dan Ives’ comments during Yahoo Finance’s Invest event on November 13, 2025 [1], where he declared that retail investors have transitioned from being “at the little kids’ table at Thanksgiving” to now being “at the adult table — they’re front and center” [1]. The announcement occurred during significant market volatility, with technology stocks experiencing broad-based declines. Ives specifically highlighted retail investors’ leadership in identifying opportunities in Robinhood (HOOD), Palantir (PLTR), and Tesla (TSLA), noting they are often “very informed” and frequently get ahead of institutional investors [1].

The timing of Ives’ remarks is particularly significant given the concurrent market conditions. On November 13, 2025, the technology sector declined by -1.57% [0], with the mentioned retail-favored stocks experiencing substantial losses: Tesla at $401.99 (-6.64%), Palantir at $172.14 (-6.53%), and Robinhood at $121.53 (-8.61%) [0]. This divergence between Ives’ bullish assessment of retail influence and the immediate market performance creates an interesting analytical tension.

The Consumer Cyclical sector, heavily represented in retail-favored stocks, fell even more sharply at -2.87% [0], suggesting that retail investors may be facing headwinds despite their growing market influence. This disconnect between retail’s structural influence and short-term performance warrants careful examination.

The data strongly supports Ives’ thesis about retail investors’ elevated market position. Retail investors now account for approximately 20.5% of daily U.S. equity trading volume, more than doubling from below 10% a decade ago [2]. This represents a fundamental structural shift in market composition and dynamics.

Notably, during July 2025, institutional investors were net sellers of $26.8 billion in U.S. stocks, while retail investors were net buyers of $10.08 billion [2]. This pattern demonstrates retail’s role as a stabilizing force during institutional selling pressure. The first half of 2025 saw retail investors purchase a net $155.3 billion in single stocks and ETFs, the largest inflow since tracking began in 2014 [3].

Retail investors have particularly transformed the options market, with activity surging to exceed 10 billion contracts in 2022 and continuing to grow [4]. As of October 2025, options trading volume cleared over 110 million contracts in a single day, overwhelmingly driven by retail traders [4].

Zero days to expiration (0DTE) options have become particularly significant, exceeding 60% of total U.S. stock trading volume by September 2025 [4]. This trading pattern, heavily influenced by retail investors, creates distinct market dynamics with higher intraday volatility and different risk characteristics.

The stocks mentioned by Ives provide compelling evidence of retail investors’ ability to identify opportunities early:

• Palantir
  : Retail investors identified the opportunity when the stock was trading in “teen” levels, while institutional investors initially dismissed it. The stock subsequently rose to over $200 [1].
• Opendoor Technologies
  : Up more than 470% in 2025, driven primarily by retail investor enthusiasm [1].
• Tesla
  : Has long been a retail favorite, maintaining significant retail ownership despite periods of institutional skepticism.

The retail investor revolution has fundamentally altered market structure globally. Approximately 75% of retail trades globally are now executed via smartphone apps [2], with mobile trading increasing odds of risky-asset purchases by 67% and return-chasing by 71% [2].

However, retail influence varies significantly by market: India and China see retail accounting for 40-80% of trading volume, while the U.S., U.K., and South Korea show 20-35% daily retail participation [2]. This geographic variation creates different market dynamics and risk profiles across regions.

Ives’ comments highlight a fundamental inversion of the traditional market hierarchy. Rather than following institutional leads, retail investors are increasingly setting market direction, particularly in technology and growth stocks. This shift represents not just increased participation but enhanced sophistication and influence.

The 2021 GameStop short squeeze, which drove the stock up more than 2,500% and led to the closure of hedge fund Melvin Capital [1], served as a watershed moment demonstrating retail investors’ collective power. Since then, retail influence has become more systematic and sustained rather than episodic.

The rise of retail investors has created new market dynamics where retail and ETF/institutional vehicles are increasingly the marginal price-setters in many equity movements [2]. This represents a fundamental change from traditional market structure where institutional investors dominated price discovery.

The increased retail participation has also altered volatility patterns, correlation structures, and liquidity dynamics. Retail-driven markets tend to exhibit different intraday patterns, with higher volatility during retail trading hours and increased correlation among retail-favored stocks.

The democratization of trading through mobile technology has been a key enabler of this shift. With 75% of retail trades executed via smartphone apps [2], barriers to entry have been dramatically reduced, enabling broader participation and more rapid information dissemination.

However, this accessibility has also introduced new behavioral patterns, with mobile trading increasing risky-asset purchases by 67% and return-chasing behavior by 71% [2]. These behavioral factors contribute to the distinct market dynamics observed in retail-dominated securities.

The increased retail influence introduces new systemic considerations:

• Higher volatility patterns
  : Retail-driven markets exhibit distinct volatility characteristics, particularly around options expiration dates and during periods of high social media sentiment.
• Concentration risks
  : Significant retail ownership in certain securities creates potential for rapid sentiment reversals and sharp price movements.
• Liquidity dependency
  : Market depth in retail-favored stocks may be more dependent on continued retail participation, creating potential vulnerabilities during sentiment shifts.

The retail investor revolution has attracted regulatory attention, with potential implications including:

• Trading restrictions
  : Potential limitations on certain platforms or instruments, particularly around options trading and margin requirements.
• Disclosure requirements
  : Increased transparency requirements for retail-focused brokers and trading platforms.
• Market structure reforms
  : Changes to order execution rules and market maker obligations affecting retail order flow.

Despite the risks, the retail investor evolution creates several opportunities:

• Enhanced liquidity
  : Retail participation provides substantial liquidity to markets, potentially reducing trading costs and improving market efficiency.
• Broader market participation
  : Democratization of investing expands the investor base and may lead to more efficient price discovery over the long term.
• Innovation in financial services
  : The retail boom has driven innovation in trading platforms, research tools, and educational resources.

Market participants should track several metrics to assess the evolving retail influence:

• Retail flow data
  : Monitoring net buying/selling patterns from major brokerages.
• Options market activity
  : Particularly 0DTE contract volumes and open interest patterns.
• Social media sentiment
  : Tracking retail sentiment indicators for heavily followed stocks.
• Institutional positioning
  : Changes in institutional ownership relative to retail activity patterns.

Dan Ives’ assessment accurately reflects a fundamental transformation in market dynamics where retail investors have evolved from marginal participants to significant market drivers. The quantitative data supports his thesis, with retail investors now accounting for over 20% of daily U.S. equity trading volume and demonstrating consistent net buying behavior even during institutional selling periods [2].

The stocks specifically mentioned by Ives—Robinhood, Palantir, and Tesla—represent prime examples of retail-led market movements, where retail investors have often been ahead of institutional investors in identifying opportunities [1]. However, the concurrent market sell-off during his remarks highlights the complex relationship between retail influence and short-term performance.

The retail investor revolution has fundamentally altered market structure, trading patterns, and volatility dynamics. While this creates new opportunities for market participation and liquidity, it also introduces distinct risk factors that require careful monitoring and potentially new regulatory approaches.

The global nature of this trend, with varying levels of retail participation across different markets, suggests that this represents a sustained structural shift rather than a temporary phenomenon. Market participants will need to adapt their strategies and risk management approaches to account for the continued influence of retail investors in price discovery and market dynamics.