Enthusiasm around meme stocks has eased for young investors a year on from the GameStop trading frenzy. With Gen Z attention shifting to companies in areas like electric vehicles and the metaverse, according to a report released on Friday.
According to the quarterly investor outlook from Apex Fintech Solutions, which provides custody and clearing services for brokers like SoFi, Stash, WeBull, and Goldman Sachs Group’s Marcus, Tesla was the top stock holding among the Gen Z cohort – persons born after 1996 – in the fourth quarter.
According to the survey, which looked at more than 1 million Gen Z accounts held by Apex’s clearing arm, AMC Entertainment fell from first to third place in the top 100 ranking of stocks for the first time in several quarters.
GameStop, which saw retail investors jump in in January in a social media-fueled attempt to penalize short sellers, fell 5 ranks to No. 11. Meme firms with less public attention fell further, with ContextLogic, the owner of e-commerce platform Wish, falling 35 ranks to No 56. Meanwhile, Ocugen, a biotech business, falling 41 spots to No 91.
Rivian Automotive, an electric vehicle startup that went public in November, debuted at No 44. With Chinese EV maker NIO at No 8 and Ford Motor at No 19.
Meta Platforms, the parent company of Facebook, surged two ranks to No. 12, while Roblox climbed 36 spots to No. 36.
In an interview, Apex chief executive officer Bill Capuzzi noted; “There’s a lot more interest in metaverse”. “As more non-financial technology businesses go public, we’ll probably see them break into the top 100.”
The metaverse is a term used to describe shared virtual world environments that individuals may access via the Internet. Moreover, it frequently employs virtual reality or augmented reality.
Paypal, formerly known as Square, jumped nine ranks from the third quarter to No. 19, while Block, formerly known as Square, remained stable at No. 25.