Millennial investors—born between 1981 and 1996—hold slimmer assets than their Gen X and baby boomer counterparts, which may contribute to less active market activity. Additionally, only 37 percent of affluent millennials feel financially literate.
Despite that, evolving technology has made investing more accessible than ever. Gone are the days when you have to maneuver through the aged Vanguard site or get on a call with an advisor just to buy a stock.
According to a 2019 study from Ally Bank, almost 70 percent of millennials had made some kind of financial investment. This number has gone up since the start of the COVID-19 pandemic, when Robinhood users surged to 13 million. Some may be sticking to the 401(k) world while others dabble in individual stock picking via platforms like Wealthfront and Robinhood (and still others decoding the world of futures and options).
What stocks are millennials buying?
Millennials tend to gravitate toward high-profile tech and lifestyle brands. Younger investors love these eight stocks in particular:
The Peloton trend is real, and so is the Peloton stock trend—particularly with the company's target audience, millennials. PTON has increased 301.53 percent YTD.
In a September report from Apex Clearing, Tesla ranked third in millennial stocks at 9.5 percent of holdings. TSLA has risen 377.63 percent YTD. Tesla's Q3 2020 earnings beat expectations—the company's fifth successful quarter in a row.
Zoom Video Communications (ZM)
Zoom stock skyrocketed at the start of the pandemic, when virtual meetings became the new norm. Whether or not Zoom's good run will continue is up for debate, but ZM has increased 640.31 percent YTD and holds 0.6 percent of millennial holdings.
As the second most popular millennial stock (with 9.8 percent of holdings), Amazon is faring well thanks to younger portfolios. AMZN stock has risen 66.43 percent YTD.
SPI Energy Co. (SPI)
SPI Energy Co. has seen a few major fluctuations recently, most notably a 1,250 percent increase in Sept. Their new subsidiary, EdisonFuture, Inc., is to blame. SPI has jumped 327.42 percent YTD.
Apple is the most popular stock for millennials with 10.6 percent of holdings according to Apex Clearing. AAPL has risen 52.39 percent YTD.
Netflix is the eight most popular stock for millennials, with 2.1 percent of holdings. NFLX has grown 46.52 percent YTD.
Advanced Micro Devices (AMD)
Advanced Micro Devices, whose biggest competitors include Intel and NVIDIA, holds the ninth spot for stocks millennials love. AMD accounts for two percent of holdings and has boosted 64.674 percent YTD.
The top millennial investors aren't Buffett-ing
We know Warren Buffet, born in 1930, is a top investor for the silent generation. However, markets are changing, and millennial investors are climbing the ladder in their own way.
Jordan Sowhangar of Univest Investments told U.S. News, "The majority of millennials have either read or been told that they won't be able to rely on Social Security benefits in retirement."
With this in mind, it makes sense that millennials would use evolving technology to help set themselves up for success come retirement. In reality, these eight stocks that millennials love just touch on the generation's market involvement.