Millennials Are Choosing Unconventional Stocks, and They’re Winning
Millennials are picking uncommon stocks this year, and not one of them appears in the S&P 500, the most followed equity index. According to Investor’s Business Daily, a few of the top performing stocks for this generation include video game, consumer electronics and gaming merchandise retailer GameStop (NYSE: GME), healthcare company Ocugen (NASDAQ: OCGN) and communication services AMC Entertainment (NYSE: AMC). All 10 of millennials’ top performers in 2021 are also new holdings for them this year.
Investor’s Business Daily’s analysis of holdings data from Apex Clearing and market data from MarketSmith and S&P Global Market Intelligence found that these winners were not among the top 100 holdings of millennial investors in the fourth quarter. This analysis studies U.S. accounts of more than three million millennials. The group’s average age is 32 and their portfolio is valued at an average of $2,900, up 15% in the quarter. All these winners are up 100% or more this year, according to the Investor’s Business Daily analysis.
Meme stocks, penny stocks and special-purpose acquisition companies are top winners amongst millennials. Meme stocks are stocks that have seen an increase not because of company performance, but because of hype on social media and other online platforms. These stocks, like GameStop and AMC, skyrocketed early in 2021 during a huge short squeeze. However, these stocks are down as of April.
Investor’s Business Daily reported that while GameStop is down roughly 20% this month, it’s up nearly 700% this year. AMC is also down 20% this month, but millennials have pushed this stock up more than 370%.
Meme stocks aren’t the only winners with millennials this year. Four of millennials’ top 10 performing stocks are trading for $5 or less per share, according to Apex Clearing. Millennials are also investing more in companies that stand to do well as the economy reopens, such as airlines and travel companies.
“To say that this year has been volatile and unprecedented would be a vast understatement,” said Apex Clearing CEO Bill Capuzzi in a company statement. “Investing habits have indeed shifted among newer generations, but one thing that has remained constant is their confidence in Wall Street darlings like Tesla and Apple, demonstrating the steadfast trend of technological innovation,” he said.
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