A new generation of investors is becoming more influential in the markets.
One of the driving forces of the stock market rally over the past two years has been the rise of a new generation of investors that are engaging with the market on social media and trading stocks on investment apps like Robinhood Markets Inc. (ticker: HOOD). The youngest generations of Americans are often the trendsetters in the economy and the market. Investors looking for the next long-term investment opportunity would be wise to keep an eye on what stocks young investors are buying. Here are the 10 most commonly owned stocks among millennial investors as of the end of 2021, according to Apex Clearing.
Tesla Inc. (TSLA)
Electric vehicle maker Tesla and its influential CEO Elon Musk have been two of the most controversial topics on Wall Street in recent years. Critics point out Tesla’s inability to hit targets or deliver products living up to Musk’s hype, along with its modest share of the global auto market compared to its $1.1 trillion market capitalization. Supporters highlight Tesla’s brand value, particularly among younger consumers, and its impressive 70.8% sales growth in 2021. Apex reported that TSLA stock made up 19.6% of the top 100 holdings among millennial investors at the beginning of 2022.
Apple Inc. (AAPL)
Even with a market cap of more than $2.8 trillion, iPhone maker Apple continues to churn out profits and generate outsize returns for investors as it transitions from hardware sales to services revenue. Apple shares are up more than 45% in the past year. In the most recent quarter, Apple reported an impressive $34.6 billion in net income, up 20.6% from a year ago. Apple also boosted earnings per share and supported its stock with $85.5 billion in buybacks in fiscal 2021. AAPL stock accounts for 10% of the top 100 holdings among millennial investors.
AMC Entertainment Holdings Inc. (AMC)
When it comes to Wall Street controversy, it doesn’t get more controversial than the king of the meme stocks, AMC Entertainment. In early 2020, AMC was on the brink of bankruptcy. Miraculously, the company became the focus of a targeted buying campaign that began with Reddit’s WallStreetBets community aimed at triggering a short squeeze. AMC raised desperately needed cash by selling shares of stock and used that money to stabilize its balance sheet. AMC recently announced a bizarre investment in gold miner Hycroft Mining Holding Corp. (HYMC), and younger investors believe an AMC turnaround is in the works. AMC stock represents 7.6% of millennials’ top 100 holdings.
Amazon.com Inc. (AMZN)
There are certainly plenty of things for young investors to like about Amazon, the market leader in e-commerce and cloud services. The pandemic accelerated Amazon’s market share gains over brick-and-mortar retail competitors, and the transition to a more remote and hybrid workplace facilitated demand for Amazon Web Services’ cloud business. In 2022, Amazon will continue to deal with several challenges, including difficult pandemic comparisons, inflationary costs and supply chain disruptions. Despite those headwinds, young investors seem content with Amazon as a core long-term holding. AMZN stock makes up 4.9% of the top 100 holdings among millennial investors.
Microsoft Corp. (MSFT)
Microsoft is one of a handful of legacy tech companies that has successfully adapted and transitioned its business model for the 21st century. Microsoft is one of the top names in professional software, cloud services and gaming. The company is best known for its Windows operating system, its Office software suite and its Azure cloud services business. In the most recent quarter, Microsoft reported 46% Azure revenue growth and 29% growth from its Dynamics enterprise software segment, and it recently announced plans to acquire video game publisher Activision Blizzard Inc. (ATVI). MSFT stock accounts for 3.5% of the top 100 holdings among millennial investors.
Nvidia Corp. (NVDA)
Semiconductor giant Nvidia has been one of the top-performing stocks in the market over the past decade. The stock has gained more than 7,000% in the past 10 years, as investors have recognized the high-end chipmaker is supplying the processing power needed for a wide range of high-growth, cutting-edge tech fields such as artificial intelligence, online gaming, cloud services, and autonomous vehicles and robots. Nvidia is showing no signs of slowing down in 2022, reporting 52.7% year-over-year revenue growth and 106.1% net income growth last quarter. NVDA stock represents 2.9% of millennials’ top 100 holdings.
Nio Inc. (NIO)
While U.S. EV maker Tesla has been an excellent investment in the past year, shares of Chinese EV maker Nio are down nearly 50% amid crackdowns on U.S.-listed Chinese stocks by both Chinese and U.S. regulators. The company reported impressive 23.3% vehicle delivery growth through the first two months of 2022, but investors are concerned that Nio and other Chinese stocks could be delisted from U.S. exchanges completely if they fail to meet new disclosure requirements. Nio stock accounts for 2.2% of the top 100 holdings among millennial investors.
Meta Platforms Inc. (FB)
Meta Platforms is the parent company of social media platforms Facebook, Messenger, Instagram and WhatsApp. Meta shares are down more than 30% in the past six months, and much of the selling pressure came after the company issued weaker-than-expected 2022 guidance in February and said changes Apple made to its iPhone privacy policies will cost Meta $10 billion in revenue this year. Facebook’s Meta Reality Labs also lost $10 billion in 2021, but younger investors may be buying the dip and betting that Meta’s investments in building the metaverse will eventually pay off. FB stock represents 2% of millennials’ top 100 holdings.
Advanced Micro Devices Inc. (AMD)
Chipmaker Advanced Micro Devices has been one of the biggest underdog stories of the past decade. As recently as 2015, AMD shares were trading for less than $2 per share. Now, thanks in part to the success of its next-generation EPYC processors and stumbles by chip giant Intel Corp. (INTC), AMD shares are trading for more than $120 per share. Younger investors seem to believe AMD will continue to gain market share from Intel for the foreseeable future as it pushes to roll out next-generation chips in 2022. AMD stock accounts for 1.9% of millennials’ top 100 stock holdings.
SoFi Technologies Inc. (SOFI)
SoFi Technologies is a financial technology company that specializes in student, personal and home loans along with investing and money management. SoFi is also backed by influential venture capitalist Chamath Palihapitiya. SoFi shares closed at $22.65 on its first day of trading following its merger with a special-purpose acquisition company, or SPAC, in June 2021. Since that time, SPACs have fallen out of favor in the market, and SoFi shares are down more than 50% from its merger price. Millennial investors appear to be undeterred by SoFi’s poor performance. SOFI stock makes up 1.8% of millennials’ top 100 stock holdings.
10 stocks millennials are buying:
— Tesla Inc. (TSLA)
— Apple Inc. (AAPL)
— AMC Entertainment Holdings Inc. (AMC)
— Amazon.com Inc. (AMZN)
— Microsoft Corp. (MSFT)
— Nvidia Corp. (NVDA)
— Nio Inc. (NIO)
— Meta Platforms Inc. (FB)
— Advanced Micro Devices Inc. (AMD)
— SoFi Technologies Inc. (SOFI)
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