Millennials are betting big on Big Tech. Apex Clearing’s latest Millennial 100 stock pulse report found that Apple (AAPL), Amazon (AMZN), Tesla (TSLA), and Facebook (FB) were the stocks most held by millennial investors. Berkshire Hathaway (BRKB) rounded out the Top 5.
Millennials, typically defined as the generation born between 1981 to 1996, are continuing to shift trends by “investing what they believe in,” Apex CEO Bill Capuzzi told YFI AM on Thursday. “They're investing what they know.”
While many companies favored by millennials went public this year, including Uber (UBER), Lyft (LYFT), and Pinterest (PINS), Capuzzi said one has risen up the list more quickly than most: Beyond Meat (BYND).
The plant-based protein-maker jumped from No. 62 to 43 from Q2 to Q3, as consumers continue to look to meat alternatives. Shares of Beyond Meat are up more than 300% since going public in May. It’s a boost that Capuzzi believes could have given some other stocks a rise on the pulse report, as well.
He suggested looking at a stock such as McDonald’s — ranked No. 36, up from 58 last quarter — which began a pilot for a new plant-based burger from Beyond Meat in 28 restaurants in southwestern Ontario on Sept. 30, cleverly named the P.L.T. (plant, lettuce, and tomato).
The partnership is “old world and new world kind of coming together,” Capuzzi said, which could have led to the restaurant chain’s gain in the Apex’s ranking.
That ranking looked at 706,406 investment accounts of millennials. The average account had roughly $2,500, and the average account older was just over 31 years old.
Freddie, Fannie, and the Fed
Two stocks that gained favor in Apex’s Q3 analysis were Freddie Mac (FMCC) and Fannie May (FNMA). Capuzzi saw this as an indication that millennial investors “know where the market’s heading, and they know where the Fed was heading” with its recent rate cuts.
The Federal Reserve’s rate cuts have brought mortgage interest rates to a three-year low, with one forecast predicting nearly $2 trillion of mortgage originations this year.
Fannie May, previously ranked No. 55, clocked in at 32 on the list, while Freddie Mac made its debut at No. 100.
Other key takeaways
Some other notable findings showed how millennials are investing differently from previous generations.
Big-box retailers remained favorable among young investors. Costco (COST), Target (TGT), and Walmart (WMT) all garnered placement on Apex’s list, proving that millennials aren’t turning away from brick-and-mortar completely (though of course all three of these companies have e-commerce business, too).
Millennials are moving away from the S&P 500. While the tech sector is overweighted in millennial investments, other sectors like oil and gas show minimal investment, and none of the accounts analyzed were invested in utilities.
Follow Katie on Twitter: @hashtagkatie.