Younger Generations Cling to Popular Meme Stocks, Gain Interest in the Cannabis Sector, and Continue To Hold Mega-Cap Stocks in the Q2 Apex Next Investor Outlook
DALLAS–(BUSINESS WIRE)–Apex Clearing Corporation (“Apex” or the “Company”), the business-to-business custody and clearing platform powering innovation in fintech, investing, and wealth management, today released its Q2 2021 Apex Next Investor Outlook, which highlights the top stocks held by the rising class of Gen Z investors. The report also captures which stocks fell in the rankings and reveals behavior parallels and comparisons to the older generations.
Amid recent price cuts in popular meme stocks and associated skepticism, retail investors across all generations showed unanimous conviction in these names coming out of the second quarter. The data indicates younger crowds saw the most potential in companies that have been popular on social media and in online forums with AMC displacing TSLA as the top stock for Gen Z and Millennials, as of June 30, 2021. Cannabis companies and mega-cap stocks also became of interest to Gen Z investors, while cryptocurrency-related stocks faded in the rankings.
“As Gen Z investors become a more influential force, fintech companies and advisory firms who understand them and embrace the accompanying changes will be better positioned to come out ahead,” said Bill Capuzzi, Chief Executive Officer of Apex. “It’s fascinating that AMC made up nearly 25% of the holdings within Gen Z’s list of the top 100 stocks, compared to a mere 3.6% of holdings in the first quarter of 2021. Their evolving interests and participation in the markets will reshape a new wealth management industry – one that looks quite different from the traditional model.”
The Apex Next Investor Outlook includes an analysis of the top 100 stocks owned by millions of investors on the Apex platform, with a special focus on the Gen Z digital investor sentiment. The Q2 2021 report analyzed more than 1 million Gen Z accounts, in addition to over 5 million accounts held by Millennials, Gen X, and Baby Boomers.
Themes in the Q2 Apex Next Investor Outlook include:
- AMC and GameStop soar while other meme stocks plummet: After making a splash earlier this year, certain meme stocks stayed hot with younger investors in Q2. Meme stock veteran AMC Entertainment vaulted to the #1 spot for Gen Z and Millennials, with GameStop remaining in the top 10. AMC even got some love from Boomers—a generation that has largely stayed away from meme stocks—who pushed the stock up 69 positions to #5. However, some previously popular stocks posted steep declines: Zomedica, Clover Health and Nokia all slid at least a dozen spots in the Gen Z rankings. Other fizzy Reddit favorites failed to gain traction with the youngest investors, as names like BlackBerry, Wendy’s and Bed Bath & Beyond were shut out of the Gen Z top 100.
- Cryptocurrency-related stocks get left in the dust: Companies operating in the crypto industry saw a notable slide in the Gen Z rankings, including mining firms Marathon Digital Holdings (down 17 spots to #42) and Riot Blockchain (down 32 to #70). Blockchain names faced multiple headwinds, including a growing global debate around Bitcoin’s energy consumption. Cryptocurrency prices also weighed on the sector. After multiple quarters of strong price gains, many crypto assets fell into bear market territory during Q2. Grayscale Bitcoin Trust—an investment vehicle that offers exposure to Bitcoin without purchasing the cryptocurrency directly—plummeted 51 spots to #100.
- Growing optimism around cannabis companies: Cannabis companies gained momentum in Q2 with younger investors boosting Canadian cannabis company Tilray in their rankings. Upon Tilray’s recent completion of a major business combination with Aphria, giving them the largest geographic footprint in the industry, Gen Z lifted the company 32 spots to #27 while it climbed the Millennial rankings by more than 20 spots to #35. Sundial Growers also enjoyed significant fandom, ranking #25 for both generations as U.S. political moves in favor of legalization proved to be a broad tailwind for the sector.
- Sustained universal appeal of mega-caps: While Gen Z investors may be more willing than other generations to embrace newer themes, they also appreciate the universal appeal of today’s blue-chip mega-cap stocks. Apple, Amazon, and Tesla remained steady within the top 5 holdings across all generations. Other stalwarts like Microsoft, Nvidia, Berkshire Hathaway and Google have an established track record as part of Gen Z’s top 100. Younger investors pushed them up the rankings in Q2, putting them in the top 25—perhaps to balance their portfolios against more volatile holdings or express longer-term views on sustainable growth.
To see the complete list of the Apex Top 100 stocks among Gen Z investors, click here.
Apex is a subsidiary of Apex Fintech Solutions LLC. As announced on February 22, 2021, Apex Fintech Solutions LLC entered into a definitive agreement with Northern Star Investment Corp. II (“Northern Star”) (NYSE: NSTB), a publicly traded special purpose acquisition company, which would result in Apex Fintech Solutions becoming a publicly listed company after the required approval by the stockholders of Northern Star and the satisfaction or waiver of certain other conditions set forth in the agreement.
ABOUT APEX CLEARING CORPORATION
Apex Clearing Corporation is the fintech for fintechs powering innovation and the future of digital wealth management. Our proprietary enterprise-grade technology delivers speed, efficiency, and flexibility to firms ranging from innovative start-ups to blue-chip brands focused on transformation to capture a new generation of investors. We help our clients provide the seamless digital experiences today’s consumers expect with the throughput and scalability needed by fast-growing, high-volume financial services businesses. Founded in 2012, Apex Clearing Corporation is registered with the SEC, a member of FINRA and a participant in SIPC.
For more information, visit the Apex Fintech Solutions website.
Jonathan Gasthalter/Carissa Felger
Gasthalter & Co.