5 Stocks Millennials Are Investing In
Relatively unhampered by medical expenses and costly tuition fees for children, for the time being, millennials are busy spending more money than any other demographic.
Some brands have managed to make their way into the hearts of these young adults in the early stages of their careers, with the following stocks boosted by a big chunk of the millennial wallet:
One-year return: 15 per cent
The theme parks and cartoons are now just a fraction of Disney’s business. Its acquisition of Marvel Studios in 2009 has given the company a string of Hollywood hits thanks to hugely successful franchises such as Iron Man, The Avengers, Spider-Man and many more, while its proposed acquisition of 21st Century Fox will see it add the X-Men and Deadpool franchises.
Oh, and did we mention Star Wars? No company earns more from millennial movie tickets (or streaming fees)—and its movies are also loved in the fast-growing Chinese market.
One-year return: 166 per cent
If your top choice for achieving mindfulness is yoga, then Lululemon—the purveyor of all things yoga, from chic tops to mats—has got you covered. And shareholders have rejoiced in the global athleisure boom as the Vancouver-based company’s stock has soared on impressive sales figures, driven by millennial customers who want to attain the perfect yoga bod.
Although it’s the smallest company on our list, Lululemon is the fastest-growing and most favoured among investors.
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One-year return: 48 per cent
Not a household name, perhaps, but Kering owns a host of luxury-goods brands that are increasingly popular w ith the wealthier end of the millennial segment. Its top names include Gucci, Saint Laurent, Balenciaga, Alexander McQueen, Bottega Veneta, Boucheron, Brioni and Pomellato.
Gucci in particular has enjoyed spectacular growth among millennial shoppers under the direction of designer Alessandro Michele. Like many of the most successful companies, it has captured both the millennial demographic and growing demand in Asia. You might not have heard of it, but Kering is playing strategy behind the scenes that’s decidedly on-trend.
One-year return: 62 per cent
Nike was, of course, already a juggernaut even before it embraced Colin Kaepernick—the American football quarterback who ignited a culture war over his decision to protest against police brutality by kneeling during the US national anthem.
However, its new ad campaign starring Kaepernick—which features the tagline “Believe in something. Even if it means sacrificing everything”—solidified the brand's standing among the more socially conscious millennial generation. It also created a huge spike in sales and, after a brief dip, spurred the stock to reach record highs.
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One-year return: 94 per cent
“Netflix and chill” isn’t just a euphemism, as the company’s relentless growth and utter dominance of internet bandwidth shows. Indeed, the company’s head of content delivery once bragged that its scale was bigger than the international capacity of the internet—made possible by storing its entire catalogue at local data centres rather than choking global internet highways as millennials binge-watch Rick and Morty.
As more people cut the cord and ditch cable television, streaming services are set to continue their rise to dominance. Netflix isn’t chilling; it’s exploding.
Other millennial stocks to watch:
• Video-game developer Electronic Arts, which makes the most popular football and American football games, as well as many others.
• British clothing brand Superdry, which specialises in Americana emblazoned with Japanese kanji.
• Sport gadgeteer Fitbit, maker of step-counting wristbands and other fitness-focused tech.
• Wargaming miniatures company Games Workshop, which specialises in tabletop wargames that have enjoyed a revival among hipsters
This article first appeared on hk.asiatatler.com.