Robinhood has recently blessed us with a list of the top 20 stocks held by millennials. Here is my take on the top 20 stocks held by my generation (sorta my generation, I mean, technically defined as Gen Z since I'm 19, but who is counting?)
How I'm grading the companies
It either gets an "approval/yes" if I like the company and agree with what the millennials are buying. It gets an "eh" if I feel as if it's a decent company, but I would not place my money in it at this time. Finally, it will get a "disapproval/no" if I completely want to avoid the company like the plague. Of course while also having my critiques. Now... let's get to it!
I have no problem with Starbucks, I think it's a well-established company who has plenty of growth left in the Chinese market, despite China comp sales being down, it has plans to tap into the delivery scene in China and provide a nationwide delivery service. Furthermore, their latest Starbucks rewards visa credit card is a huge benefit for the company as well.
Beautiful financials in terms of revenues and net income in the past 4 years, their share price has not been doing much, however, nor has it really correlated with what they have been earning. You get an approval from me millennials :)
A stock that I own, one of Wall St's darlings that have gained PLENTY of momentum in terms of share price over the last two years. Is it overvalued? Yeah. Is it unprofitable? Yeah. Is the payment processing space super competitive, especially when you're up against the big guys like PayPal, Verifone, and Ingenico? Yeah. Do we care? No.
Their revenues have been outstanding in the past 4 years, as well as their share price, net profit has improved over time, but the company is not profitable at all. Square has to prove their current share price. Millennials, you get an "eh" but also an approval since I own the stock.
Ah, yes, Disney, the conglomerate of media, the king of parks and resorts, and radio. They are venturing and creating their own streaming service, a bit of growth left in it, despite their size. Disney is still trying their best to acquire 21st Century Fox.
Financials have been good as well as their share price. You get an approval from me millennials
17: Micron Technology
The company provides semiconductors, it offers DRAM products and memory chips. These sorts of products are a commodity and the price often fluctuates, that also means that their revenues fluctuate as well.
Like I said, their financials fluctuate often, as well as their share price, I'd give it a disapproval from me millennials.
The Chinese Amazon, the largest e-commerce retailer in China, that has plenty of potential to continue growing in not only the Chinese market but as well as the U.S market.
The financials are PHENOMENAL, like, look at that! The scary part is, I truly think that Alibaba has not reached its full potential and that it still has plenty of growth left. I approve this stock millennials.
The largest e-commerce retailer in the U.S, who also provides cloud services to individuals and businesses. Both very large profit makers who still has much growth in the future.
I REALLY don't think their share price justifies their net profit, just their revenues, however, Amazon is known for constantly placing every last penny back into their business and investing in the future. You get an "eh" from me for this stock millennials.
From a long-term perspective, Tesla seems as if they are guaranteed to dominate the auto industry and be #1 in the electric vehicle space. However, they are currently taking large losses and is an unprofitable company, and usually, with auto manufacture companies you have to be VERY wary on their financial statements and how much of their cash is being spent on the assembly line, production, the factory itself, and so forth.
This one is hard, I'd like to pass this one up since their share price DOES NOT reflect their overall financial statement, but at the same time, they are performing (and in the future) far better than other car manufacturers. I'll give it an "eh"
Creates GPU and processors for PCs. Jesus man, they are super dominate in those two major segments of their business. I have nothing bad to say.
Great financials, it has correlated well with the share price as well. I approve.
12: Bank of America
"Too big to fail" I prefer BofA as one of the few larger banks I'd invest in (next is JPMorgan) in comparison to say a Wells Fargo who seems to ruin their clients lives on what appears to be a monthly basis. Bank of America seems to get away from the spotlight of trouble and bad press.
This bank is awfully too large for it to make ridiculous profits, but it's still a great profit engine, don't get me wrong. I like the financials and share price. I approve
Oh lord, a very volatile play here, especially since Snap is feeling the heat from IG stories and FB stories, the mistake they made was changing their overall layout, it turned off people who use the app. The company is currently unprofitable and will continue to be unless a lot of companies start advertising through their platform.
Snap is overall in a very iffy environment, financials are doo doo, and gets a no from me.
The king of video streaming, however, the space is super competitive and other large media companies are merging and creating their own streaming service to compete against Netflix.
Netflix utilizes a lot of their cash to create content and keeps little for profit. They have phenomenal revenues year over year, but we need some net income on that annual report man. It gets an eh from me.
Twitter is in a very competitive space, but if you ask me to choose between investing in Snap or Twitter, I'd go long Twitter and short Snap. I think that POTUS (an active Twitter user) gave the company a bit of a boost in their monthly users and new users, everyone seemed to be so captivated by his tweets and quickly people hopped on whatever he might have tweeted and either argue or agree with whatever he might have said. It be interesting to witness what happens after Trump leaves office, will all Twitter users who were there to argue or agree with him just suddenly leave? Or will monthly user growth continue increasing? Ads are a major way twitter gets their revenues, and ad rates will go up in the future as more people and companies utilize it to market their services or products.
Not the most attractive financials, however, they are doing a great job in almost becoming a profitable company. You get an "eh" millennials.
No debt, billion monthly users, lots of cash, a company that owns very popular social media apps that has much growth in the future.
Financials are great, share price fluctuates, but an approval from me if you can stomach the price changes.
No, management is making poor decisions and is pulling out debts out the ass. The CEO a few months back decided to discontinue their drone production, mind you, it was their biggest source of income/profit engine.
Financials are very poor, I give it a disapproval to the millennials.
Bigger no, the wearable space is a huge jungle, competing against Apple watch, Samsung watch, and other watch companies that are also creating their line of smartwatches is super risky.
Financials are poor, I give it a disapproval.
5: Advanced Micro Devices
Another company in the semiconductor space, not as large as NVIDIA however. Still provides similar products like NVIDIA
Financials are okay, it's slowly inching towards becoming a profitable company, it has plenty of catching up to do to compete with Intel and NVIDIA and companies alike. You get an eh.
After the dot-com bubble burst, this company went nowhere, in attempts to remain relevant, they created their own line of phones which flopped, however, their office products are still relevant, as well as their gaming segment, and much of their software they provide.
Good financials, relatively a good company to be in, it gets an approval form me.
Huh? Ford is in a bit of a sticky situation where they had to suspend production on the line of F-150 trucks, their largest profit driver, so the company will face a few sticky quarters in the upcoming future.
Revenues and net income have increased year over year, future outlook looks a bit iffy. It gets an "eh" leaning towards a "no."
2: General Electric
Huh? GE is in shambles, they're selling their assets left and right to pay off debts, liabilities, etc. their most profitable portions of the conglomerate are in decline, this company is under poor management.
Financials are yucky, it has plenty of work to do, it gets a disapproval from me.
Nothing bad about Apple, their services portion of the company will be the new thing the street will focus on going into the future rather than iPhone sales. A very solid business.
Financials are amazing, this gets an approval from me.
Millennials are making interesting bets, especially on tech stocks, they have future outlooks, comprehend what they are investing in, and they certainly like purchasing companies at cheap prices or stocks that have gotten beat down by -20%+ clips, such as GE, Ford, FitBit, GoPro, etc. however, the problem is, their share prices are trading at those lows for good reason, and it's not that the company is undervalued, rather the company is performing poorly and will continue to perform poorly into the future. If we were to be in a recession and Apple was trading at $90 then I'd definitely would agree for everyone to purchase shares at that price, there is nothing wrong with the company or the management, the overall macroeconomic environment is just bad. In this case, the macroeconomic environment is great, the companies are the problem, their management is bad, these companies should not be as reckless as they are now and reporting such results on an annual and quarterly basis. Aside from that, I tip my hat to the millennials for investing early on in life.