“Cool factor” is what millennials are looking for when they choose the stocks to invest in as newbie investor in the stock market; and with “cool factor,” we mean weed. Data from Robinhood, commission-free trading and stock investment factor targeted towards the Gen Z and newbie investors, revealed that the pot company, Aurora Cannabis, has overtaken huge brands as the most favored stock to invest in the platform.
Aurora Cannabis recently ranked No. 1 on the platform’s list of the top 20 most-held stocks in Robinhood. Apple, which has previously become the most preferred stock by millennials, is now ranked at 4th place. The platform has carved its way in the niche with beginner investors, and the data makes sense to conclude what millennials think the best stocks to invest in are.
“There’s certainly the cool factor, and it’s a product they can relate to,” said Matthew Karnes, the founder of GreenWave Advisors, a firm specializing in researching the cannabis industry.
It further makes sense as although tech stocks like that of Apple has a history of being consistently high in the past, cannabis stocks are recently holding ground and is in a continuous rise; evidenced by its growing placement in the platform.
According to analysts, aside from the “cool factor,” the overall shift in generational attitude towards cannabis and its derivatives has also become a driving force as to why the cohort seems to have a bullish eagerness towards cannabis stocks.
“Given the limited amount of pure play cannabis stocks available for U.S. investors, it comes [as] no surprise that millennials are concentrating in these positions,” Matt Hawkins, managing principal at Cresco Capital Partners, said. “This generation has never seen ‘Reefer Madness’ and does not view cannabis as a stigma.”
Without a stigma hindering investors, it is clear that young Robinhood users are increasingly going for pot stocks.
