A new report has listed the top companies that the younger generation is investing in and it shows they gravitate towards what they believe in.
Millennials are increasingly investing in the stock market and they have made their picks quite clear. A recent report by Apex Clearing looked at over 734,000 accounts owned by U.S investors who were around 31 years of age.
Millennials are usually defined as the generation born between 1981 to 1996 and they are shifting towards investing in what they believe in. CEO of Apex, Bill Capuzzi said millennials are showing an interest in recent IPOs, and are investing in what they know. For instance, the generation has a strong focus on technology and a greener future. Here is the top three on the leaderboard:
1. Apple
Apple (NASDAQ: AAPL) is the most popular player for millennials investing in the stock market. According to the Apex report, the tech giant has a 13.5% of holdings among the generation. The brand has found a great balance between premium and entry-level pricing for its iPhones, watches, laptops, and other products like Apple TV.
On top of this, recent holiday quarter earnings boosted expectations of what is likely to be a big year for Apple, due to the demand for its first 5G iPhones. For its fiscal 2020 first quarter, the company posted revenue of $91.8 billion, which is up 9% on the year prior and is an all-time record. The popularity is also reflected in its market performance over the past six months, with the tech giant’s stock jumping from $208.78 to well over $320, before the recent market downturn.
2.Amazon
Considering millennials are buying more and more products online, it is no surprise Amazon (NASDAQ: AMZN) is a popular stock. The report revealed that the business has an 11.2% holdings share among the generation. Amazon is undoubtedly keeping up with the tech-savvy millennials who like to be able to use apps and have their purchases arrive quickly at the doorstep. In addition, around 97% of millennials use Amazon, and nearly two-thirds make half of their purchases online from the company.
The e-commerce giant reported its fourth fiscal quarter earnings for 2019, posting revenue of $87.4 billion, compared to $72.4 billion the year before. Amazon’s subscription services, which are mainly from Amazon Prime, jumped by 32% to $5.24 billion. Amazon CEO Jeff Bezos said the company now has 150 million paid Prime subscribers, which is up from 100 million in early 2018. There are a number of exciting ventures in the works for the company as it works towards expanding its on-day shipping services and international operations.
3. Tesla
The electric auto-maker founded by Elon Musk outdid social media giant Facebook (NASDAQ: FB) with popularity among millennials. The percentage holdings are a lot less than Amazon, but Tesla (NASDAQ: TSLA) has a 5.8% holdings with millenials, while Facebook trailed with 4.3%. The company is popular among millenials as it focuses strongly on a more sustainable and electric future and vehicle automation. In addition, Tesla CEO Elon Musk’s ambitions include revamping global energy grids and starting colonies on Mars.
The carmaker almost doubled the size of its mobile service fleet in 2019 and added more than 50 store and service locations. At its most recent earnings call, it was announced its solar business grew 26% in the fourth quarter of 2019. The company finished the year with $6.3 billion in cash, which is more than ever before. There are exciting future plans for the company, with the production of the Cybertruck just over a year away.
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