Gen Z are learning the stock market game through social media

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Posted 16 June, 2021

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By Jamie Watts

London, UK

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According to new data, 41% of all Gen Z investors educated themselves on the stock market and cryptocurrency through social media – predominantly TikTok and Instagram.

It appears the meme-stock mania is no short lived thing, and Gen Z intend to mix it with Wall Street suits for the foreseeable future.

In just the last six months we’ve witnessed (not for the first time) the immense market power Gen Z possesses.

Our satirical hijacking of the stock market, with the overnight climb of struggling game outlet GameStop, and the following crypto-market surge of Dogecoin aren’t merely signs that we enjoy trolling so-called traditional institutions – though that point is valid.

It also points to a genuine interest from young people in financial investment and the stock market that never previously existed. Certainly not on this scale, anyway.

While the events we’ve just touched on – rooted in amusing communities on Reddit and Twitter – undoubtedly inspired this trend, the self-proclaimed ‘digital natives’ are now curious to see how the financial market can benefit them long-term.

On that front, social media is proving a very useful avenue.

https://www.tiktok.com/@struggled/video/6958827499715349765?lang=en&is_copy_url=0&is_from_webapp=v1&sender_device=pc&sender_web_id=6904683009255081478

In-fact, according to new data published by financial research company Fidelity, as much as 41% of Gen Z investors learnt their trade through platforms like TikTok and Instagram. This is significantly more than Millennials (38%) and Gen X (25%), who tend to use more conventional methods to monitor the market like RSS web feeds.

TikTok in particular has become a modern breeding ground for young investors, with one of its emerging communities dubbed StockTok growing in engagement by the week.

As you’d expect from TikTok, and bearing in mind Gen Z’s notoriously short attention span, videos attached to this hashtag are normally straight to the point with actionable tips and advice. Who needs educating on all the fundamentals?

The report claims the hashtag ‘#investing’ has garnered more than 2.8 billion views since the start of 2021, with 58% of surveyed Gen Zers claiming they now feel ready to trade regularly.

For this demographic, buying dividend stocks – meaning handouts of profits via a corporation to its shareholders – is proving the most popular way to make a buck. Stocks related to popular memes have actually died down by comparison, demonstrating Gen Z’s shift in attitude to taking trading seriously.

@chris.stocks

Link in bio for all of my free videos #stocks #options #money #hustle #stockmarket

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‘Good or bad, people are still turning to social media,’ said Fidelity’s vice president Kelly Lannan in an interview about trading. Happy that young people are starting to ‘engage more with their finances,’ she remains concerned that some maybe putting their faith in the wrong people.

‘We want to be there, so we can make sure that we are doing our part in ensuring that Gen Z is getting the right information, and they’re not just listening to someone who wants to be famous on these platforms,’ she said.

Lannan makes a great point. Unlike most passing trends with Gen Z, this foray into the stock market has the potential to cause real damage if users place misguided confidence in their favourite creators.

Regardless of whether you take a cynical or positive stance to the situation, however, it only looks set to become more common as the months go on.

That’s not to say industry bigwigs should underestimate us. Gen Z have taken to cryptocurrency and trading like ducks to water, and we’re savvier than most give us credit for.

Jamie Watts

Senior Writer London, UK

I’m Jamie (He/Him), the Deputy Editor and a Senior Writer at Thred. Keeping up with social media updates and revolutionary technology is my forte, but when away from my keyboard, you’ll probably find me wrapped around a large Tango ice blast at the latest mediocre horror flick. Follow me on Twitter, LinkedIn and drop me some ideas/feedback via email.

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