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Niu Technologies Stock Is a Perfect Play on Millennial Trends

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Matt McCall and the InvestorPlace Research Staff
·5 min read
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If you’ve followed any technology trends over the last 10 years, you know very well that electric vehicles are all the rage. Thus, it’s no surprise that the space has expanded to include two-wheeled variants. And that’s great news for Niu Technologies (NASDAQ:NIU), which specializes in electric-powered scooters. Perhaps the only problem for Niu Technologies stock is that shares have skyrocketed this year, potentially dissuading prospective buyers.

Source: TY Lim / Shutterstock.com

But if you’re in that boat, you may want to reconsider your mindset. Just one year ago, people would have thought you were nuts if you had suggested that shares of Tesla (NASDAQ:TSLA) would challenge four-digit prices 365 days later. Yet here we are.

Of course, it’s not just investor sentiment that has sparked this paradigm shift. Instead, it’s the underlying technology. What Tesla did was prove that a new platform could challenge the combustion-engine hegemony. When it did that, it was game over. Today, you have multiple competitors wanting a piece of the action, from Nio (NYSE:NIO) to upstart Nikola (NASDAQ:NKLA).

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But one of the factors that makes NIU stock distinct from the competition is the underlying company’s overture to millennials. More than just a transportation solutions provider, Niu is a lifestyle brand. Indeed, its products may not appeal to “true” motorcycle fans — quite the opposite.

However, it makes complete sense to the company’s younger consumer base. Here are three reasons why you need to consider Niu Technologies stock for your long-term tech portfolio.

Niu Technologies Stock and Its Accessible Products

Browse the internet long enough and you’ll come across a popular meme: millennials ruin everything. In this case, they even ruined the motorcycle.

Judging from the performance of Harley-Davidson (NYSE:HOG), it seems a justifiable statement. However, a deeper look into customer motivations reveals an underappreciated catalyst for Niu Technologies stock. Sure, most millennials may not care for traditional motorcycles. However, young buyers still are purchasing motorcycles, but for reasons different than older generations.

Whereas the demographics that came before millennials typically purchase motorcycles as a hobby or passion, younger folks are primarily interested in transportation. Therefore, placing a premium on branding doesn’t make sense to this consumer category. If it works, it works.

And that’s the beauty of Niu. At time of writing, the company was selling its NQi GTS Sport model for a promotional price of $3,300. With that, you get an intuitive electric vehicle loaded with multiple app-connected features.

Compare that to a traditional Harley-Davidson motorcycle, which can be easily more than twice as expensive. As well, motorcycles have a learning curve. With Niu, the company has dummy-proofed many components of the riding experience.

Simply, the platform is suited for millennials, making NIU stock an easy buy.

Niu Technologies Is Perceived as Eco-Friendly

With an EV, one of the biggest selling points for young buyers is the environment. Several studies have demonstrated that millennials care more about environmental issues than prior generations. Judging by the pulse of popular culture, this trend isn’t likely to fade out anytime soon.

Interestingly, a OnePoll study suggested that it’s not just the environment where millennials enjoy moral superiority; from “sending a kind text to picking up trash, shopping at small businesses or being a shoulder to cry on,” they just might be better people.

Now, that might raise more than a few eyebrows. But here’s why I think this is a tailwind for Niu Technologies stock. Frankly, it doesn’t matter what you or anybody else thinks about youth culture. If enough of them think this way — and again, available data confirms this — then this dynamic is a trend. On top of that, it might be a megatrend.

You only need to look at the enormous success of Tesla to appreciate the paradigm shift that is taking place. Moreover, the pandemic has bolstered the case for NIU stock and other EV-related investments. With the lower maintenance needs of an EV, drivers are less tethered to the big oil establishment.

If you listen to millennials, you’ll know that big oil isn’t exactly their favorite topic.

A Perfect Lifestyle Fit

One of the arguments against NIU stock is that scooters aren’t very practical. For one thing, they’re limited in top speed. Therefore, don’t expect to cruise on the freeways because you probably won’t meet the minimum speed level.

Also, you can only get from point A to point B. If you want to buy that cute little sofa from IKEA, forget it! About the only thing you can carry is a bag of groceries and a small one at that.

Still, you’ve got to keep in mind that Niu’s target audience falls under the younger band of the millennial spectrum. For this group, moving from one place to another with minimal fuss is more than good enough.

In addition, the lifestyle of this demo is wildly different from other generations. While older people gradually transitioned to e-commerce, Niu’s target audience was practically born into the digitalization era.

Furthermore, the pandemic ended up becoming a perfect marketing opportunity for the company. Already, young consumers gravitated toward online purchases. The crisis only affirmed this behavior. Thus, the only part of the equation that’s missing is cheap transportation.

That’s where Niu Technologies fits in and why you need to seriously consider NIU stock.

Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. 

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