Millennials. There’s a tendency of looking at this generation with disdain and some of the backlash has nothing to do with them. In many cases, it’s the constant barrage of media spotlights – what they think, what they want, how they eat, whom they like, you get the picture – that drives everyone nuts. Nevertheless, if you want to enhance your profitability, you may want to include millennial stocks to buy in your portfolio.
First, we’ve got to recognize that the culture has shifted. For instance, my academic and professional ethos is more aligned with what baby boomers grew up with. Love me or hate me, you have 100% assurances that my work is my own – and if I borrow from others, I fully credit them. Thus, I have nothing but disdain for plagiarists. I hope at least some of you can agree with me here.
However, as society generally becomes more progressive, we’ve become tolerant of behaviors that we really shouldn’t. In other words, an amoral society may be worse than an ethically improper one, simply because the compass to make reasonable judgment calls is gone. Therefore, plagiarism doesn’t carry the shame it once used to – which is a real shame! But this may help explain why millennial stocks to buy, such as Luckin Coffee (OTCMKTS:LKNCY), simply shake it off.
Second, according to Pew Research Center, millennials became the largest generation in the U.S. labor force in 2018. Thanks to demographic realities, this will be a title they will hold for a while. That is unless a catastrophic event forces everyone to enter the job market. Barring such an abnormal event, millennial stocks to buy carry tremendous relevance.
Third, this demo hits many sweet spots. At the youngest end of the spectrum, millennials have a few years of professional experience under their belt. At the oldest, many are mid-management and have started families of their own. There’s a lot to work with, which is why the stocks to buy young people are interested in are diverse.
- Virgin Galactic (NYSE:SPCE)
- Alibaba (NYSE:BABA)
- Amazon (NASDAQ:AMZN)
- Sony (NYSE:SNE)
- Aphria (NASDAQ:APHA)
- PayPal (NASDAQ:PYPL)
- Uber (NYSE:UBER)
- Royal Caribbean Cruises (NYSE:RCL)
- Penn National Gaming (NASDAQ:PENN)
Speaking of pop cultural dishonesty, my cheat sheet for this write-up is Robinhood. Taking a broad selection of millennial favorites, these ideas are not necessarily companies I would buy. But I want to focus on why young people love them. So, let’s get right into with these millennial stocks to buy.
Virgin Galactic (SPCE)
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As a kid, I grew up watching Star Wars films. My only regret was that I did this thing called growing up and didn’t keep those toys which are now pricey collector’s items. That’s neither here nor there. The important point as it relates to Virgin Galactic, the most popular of millennial stocks to buy according to Robinhood’s Top 100 list, is that millennials have long had a fascination with space.
True, baby boomers are also fascinated with space. It was their generation that saw as children or young adults the moon landing, a remarkable achievement by NASA (and apparently Stanley Kubrick). Joking aside, millennials have grown up with space-themed science fiction as well as real science. Therefore, SPCE stock could enjoy strong investor sentiment.
According to Pew, a majority of Americans stated in 2018 that they’re not interested in space tourism. However, millennials went against the grain, with many of them declaring their interest. Since millennials are always looking for a new experience, this may not be surprising.
Is this enough for SPCE stock? Personally, I’m skeptical about the economic feasibility. However, young investors are really gunning for Virgin Galactic so I’ll let you be the judge.
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Ah yes, Alibaba. Hailing from President Donald Trump’s favorite country – I mean, he mentions it all the time, right? – BABA stock doesn’t necessarily ring pleasantly for potential stocks to buy for the older demographic. Baby boomers are the sons and daughters of the victors of World War II, so they had “greatness” indoctrinated into them.
But Chinese companies? It’s hard for older people to let go of their deeply ingrained opinions, as a Pew study recently revealed. Because of the novel coronavirus, unfavorable opinions of China have soared in the U.S. and throughout the world. However, if you’re looking for millennial stocks to buy, Chinese companies haven’t necessarily been negated.
To be fair, Pew discovered that a majority of young people have an unfavorable impression of China. Still, the demographic variance is stark, with younger people unsurprisingly being more tolerant than older demos. Because of that, BABA stock may not be a disaster that some are hoping it to be.
As well, the diversity of younger Americans and their general interest toward international cultures give foreign markets more vitality than they ever have. So, it’s possible that BABA has upside potential, but you also want to be careful.
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If there’s any candidate among stocks to buy that have most benefitted from the Covid-19 pandemic, it’s Amazon. Well before the troubles, AMZN stock was already supremely relevant because of the integration of e-commerce into our daily lives. However, with e-commerce sales representing over 16% of total retail-related revenue during the second quarter of 2020, Amazon further increased in prominence, if such a thing were possible.
While hating the company for political or ideological reasons has become increasingly popular during this extended period of unrest, the fact is, most young people probably depended on Amazon to get them through this crisis. Yes, they bought many products through its online marketplace, which ramped up market share. Also, Amazon’s AWS platform helped the broader transition to work from home.
But AMZN stock became a feel-good investment of sorts during the lockdowns. That’s because millennials aren’t as self-absorbed as many assumed, checking up on their parents and elder relatives. To support these higher-risk individuals, their progeny took advantage of various delivery services, according to data from Medical Alert Buyers Guide.
Whether the crisis worsens or not, Amazon is one of the millennial stocks to buy, no question.
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In a crowded consumer electronics market, it’s easy to overlook Sony. Once the pride of Japan Inc, SNE stock had its own troubles, a seeming endemic of poor strategies and irrelevant products. But the underlying company has really gotten its act together. I’m far removed from what goes on over there but the news I’m hearing appears quite compelling.
Recently, SNE stock breached $100 territory, starting 2021 off on an auspicious note. Indeed, shares haven’t been priced this high since they were falling off their tech bubble highs. Of course, this might trigger fears of holding the bag again. And let me tell you, if you’ve got a strong inkling to take profits, please do so. My opinion about Sony is biased and so I might end up going down with the ship.
However, there’s a reason why SNE ranks highly among millennial stocks to buy. If I had to guess, it’s PlayStation. Further, the Covid-19 crisis probably helped Sony more than we might think. Yes, video games are great entertainment. But with the lockdowns, they’ve represented an important source of connectivity – to older generations.
So, if there any snobs against gaming, put this in your pipe and smoke it!
Speaking of smoking, let’s talk about Aphria. Aside from posting inane comments on pseudo-intellectual celebrity professors’ YouTube channels, millennials love marijuana. According to a MarketWatch report, young Americans prefer cannabis to booze. Apparently, many get “zero enjoyment” out of drinking.
I must admit that I’m surprised that Aphria ranks much higher on Robinhood than cannabis powerhouses like Canopy Growth (NASDAQ:CGC) and Cronos Group (NASDAQ:CRON). Still, the general idea makes sense.
As legendary investor Warren Buffett suggests, invest in what you know. And millennials know marijuana, which inherently supports APHA stock.
Further, cannabis is rapidly losing its stigma. According to a Pew report, two-thirds of Americans support legalization. With President-elect Joe Biden moving into the White House and Democrats controlling Congress, you’d imagine that this is more than a pipe dream. True, Biden doesn’t overtly support legalization, but I’m not sure if he can duck the pressure from the vocal progressive elements of his party.
Therefore, the legislative future looks bright for Aphria and other “green” millennial stocks to buy.
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Like Amazon, PayPal is a no-brainer if you’re planning on holding for the long term, say 10 years or more. As one of the first companies to bring digital payment processing to the masses, PYPL stock has tremendous relevance. Due to the immediate threat of the coronavirus, most Americans want to stop using cash and move to digital payments.
I’m sure that this somewhat irrational concern of using paper currency will fade as the pandemic does. But for now, this is an excellent organic marketing opportunity for PYPL stock.
Still, don’t assume that PayPal is limited to a pandemic play. Rather, the crisis merely accelerated certain phenomena that the company was ideally positioned to capture. A prime example is the burgeoning gig economy. With contactless work growing in prominence, PayPal has become a choice platform for invoicing and payment processing.
Interestingly, small business services provider Skynova noted that nearly six in ten freelancers say PayPal is their top payment method. Pandemic or not, the gig economy will be here to stay, which is why PYPL deserves to be ranked highly among millennial stocks to buy.
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At first glance, Uber might not appear as the most sensible play out of available millennial stocks to buy. As you can tell if you’ve been by an airport lately, while traffic is gradually filing in, it’s nowhere near the level it used to be. A few months ago, I found myself at LAX. That it was so easy to get in and out tells you everything you need to know about the pandemic’s impact on air travel.
Because of the lack of passengers, Uber and other ride-sharing services took a major hit early in the crisis. Not only that, many people are still scared, which hurts the fundamental case for UBER stock. Nevertheless, millennial investors have been piling into shares, in part because of Uber’s diversified business. In addition to its core ride-sharing business, its Uber Eats has been instrumental for people trying to get through this terrible time.
I never thought I’d say this, but I’m a huge believer in Uber Eats, having used this service frequently last year. Of course, this is my own experience so take it with a grain of salt. But I’ve never experienced a problem with the service. Perhaps most millennials feel the same way, which may explain the popularity of UBER stock.
Royal Caribbean Cruises (RCL)
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Perhaps one of the gutsiest calls out of millennial stocks to buy is Royal Caribbean Cruises. Frankly, I’m surprised that RCL stock was included at all. Of course, fears of the pandemic should make people queasy about investments related to the cruise ship industry. Let’s face it – even before the pandemic, cruise liners were considered floating Petri dishes. The coronavirus did not help this reputation.
As well, cruises tend to be favored by retirees, baby boomers basically. At the same time, this vacation platform represents great value. Since millennials value experiences over many other goals, RCL stock may resonate with some young investors.
It’s also very possible that through their own research and education, millennials are much savvier about the markets than older generations were at the same age. That means you don’t buy when everybody else is doing the same thing. Therefore, Royal Caribbean could be enjoying contrarianism being put to practice.
In the spirit of full disclosure, I’m skeptical about RCL due to the damage done to consumer sentiment and the broader economy. Still, I can appreciate Royal’s tempting against-the-grain allure.
Penn National Gaming (PENN)
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Thanks to the rise of online sports betting, I can understand on many levels why Penn National Gaming has garnered much attention among millennials. Irrespective of age, PENN stock has been one of the best-performing stocks to buy throughout this crisis. Over the trailing year, shares have jumped over 286%.
But one factor of Penn’s investment in Barstool Sports is peculiar and that is Barstool founder David Portnoy. The man has his share of controversies. While I won’t go into details, Portnoy has been a frequent guest of Tucker Carlson Tonight. That right there tells you about Portnoy’s politics. As conservatives like to say, you can’t duck the Tuck.
Well, that’s not exactly what they say but this is a family-friendly outfit. Anyways, you’d think that millennials may have a problem with this association as they tend to be more liberal or progressive. However, you can’t make such a blanket statement. As recent events demonstrate, many young Americans are strong, even zealous proponents of conservative values.
Put another way, it might not be good to let your own biases write off PENN stock.
On the date of publication, Josh Enomoto held a long position in SNE.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.