US earnings season: how age influences the stocks you’re buying

We highlight big variations in the US stocks most popular through June across the different age groups.

Technology continues to be the flavour of the year, accounting for six of the top 10 purchases on the platform across all age groups (Tesla (NASDAQ:TSLA) included) in June on aggregate. Far and away the most popular stock is Tesla, despite shares in the electric vehicle maker having already surged 263% since the beginning of the year.

Tesla and lesser-known firm Nikola Corporation (NASDAQ:NKLA) – both named after inventor Nikola Tesla - which design and manufactures hybrid trucks, are the only two stocks that appear on the bestsellers lists across the different age groups.

Younger generations appear to favour lesser known stocks, with Genius Brands (NASDAQ:GNUS), a global kids media company, ranking first and second in the bestsellers list among customers aged 18-24 and 25-34 respectively. 

A pharmaceuticals firm - US listed China SXT Pharmaceuticals (NASDAQ:SXTC) is in second position, with shipping firm Castor Maritime (NASDAQ:CTRM) in fourth and Norwegian Cruise Line (which despite the name, is headquartered in Miami) in fifth are among some of the more niche names in the top 10 most-bought list in the 18-24 age range. Apple (NASDAQ:AAPL) makes the cut in seventh and so too does Walt Disney in ninth position.

Meanwhile, older customers appear to have a penchant for the more established names with the likes of Tesla, Apple, Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Boeing (NYSE:BA), Zoom (NASDAQ:ZM) and Facebook (NASDAQ:FB) appearing with the top 10 bestsellers in the 45-54, 55-64 and 65+ age categories.

Lee Wild, Head of Equity Strategy, interactive investor, says: “There appears to be little crossover among younger and older customers. For the most part, our older customers appear to have chosen to stick with what they know, with the blend of quality blue-chip companies plus some lesser-known stocks that could benefit from the current investment environment.

“But it would appear that in terms of risk, younger customers have a greater appetite to take a punt on lesser-known stocks. This comes as little surprise as younger investors tend to have longer investing timeframe and would therefore normally be able to carry more risk.”

On the dominance of tech sectors on aggregated bestsellers list, Wild says: “Falls in major global indices as a result of the economic fall-out of the Covid-19 pandemic, has been juxtaposed by a surge in performance of some of the biggest tech stocks – reflected by the tech-focussed Nasdaq hitting a record high earlier this month. 

“The enforced coronavirus lockdown has played to the hands of the biggest technology players, with populations more likely to make use of Amazon during the closure of non-essential retailers, while the closure of offices has benefitted video conferencing services like Zoom.

“These trends have encouraged interactive investor customers to keep up their pursuit of some of the biggest US players – most notably Tesla, which has seen its value sky rocket by around 500% since CEO Elon Musk wrong-footed short-sellers by reporting a surprise quarterly profit last October.

“While much of the tech sector has been largely insulated against the crisis, the escalation of the US-China trade war remains a threat, which could leave those that are heavily reliant on Chinese manufacturing for products such smartphones and personal computers particularly exposed.
 
“But perhaps the biggest immediate threat, which is not just exclusive to the tech sector, is the deepest depression since at least the Second World War. Firms like Apple which sell expensive premium products could be hit by a longer than expected recession which could have serious implications for profits.”

Most-bought US stocks on interactive investor in June 2020 across the different age groups