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Coronavirus stock Just 2% of our millennial investor panel says Facebook is the FAANG stock they’d want to own for the next 10 years


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Coronavirus stock Just 2% of our millennial investor panel says Facebook is the FAANG stock they’d want to own for the next 10 years

REUTERS/Erin Scott Business Insider assembled a panel of hundreds of young investors who volunteered to share their views about the markets. This is a self-selected group of people under the age of 35 who have a brokerage account. Just 2% of participating millennial investors picked Facebook as the single FAANG stock they’d want to hold…

Coronavirus stock Just 2% of our millennial investor panel says Facebook is the FAANG stock they’d want to own for the next 10 years

Coronavirus stock

coronavirus stock Facebook CEO Mark ZuckerbergREUTERS/Erin Scott

  • Business Insider assembled a panel of hundreds of young investors who volunteered to share their views about the markets. This is a self-selected group of people under the age of 35 who have a brokerage account.
  • Just 2% of participating millennial investors picked Facebook as the single FAANG stock they’d want to hold over the next decade. Amazon won out, garnering 51% of the vote.
  • Further, more than half of those surveyed said Facebook was the FAANG stock they’d least like to own over the upcoming 10-year period.
  • Facebook recently beat earnings estimates on resilient ad revenues and user growth, but executives cited a recent advertiser boycott as a lasting risk to performance.
  • Watch Facebook trade live here.

Years of privacy concerns, regulatory scrutiny, and calls to curb misinformation may be catching up to Facebook and its reputation with young investors.

Of the more than 460 millennial participants in a Business Insider panel, just 2% picked the social-media titan as the FAANG stock they’d most want to hold over the next ten years. That placed Facebook last among its mega-cap peers, while Amazon took in more than 51% of the vote.

The results come from a panel of hundreds of young investors that volunteered to share their views on the markets. This is a self-selected group of people under the age of 35 who have a brokerage account.

coronavirus stock Screen Shot 2020 08 05 at 9.21.21 AMBusiness Insider

Read more: GOLDMAN SACHS: These 24 single-stock trades can help you make big returns in August as the pandemic creates a wildly unpredictable back-to-school season

Netflix narrowly beat out Facebook to take fourth place, with nearly 4% of investors favoring the streaming company. Apple followed with a 15% share of the vote, and about 27% of the panel picked Google to outperform into 2030.

Facebook’s gloomy ranking hasn’t yet knocked its stock price. Shares rocketed to record highs at the end of July after the company beat second-quarter expectations for profits and revenue. The healthy results come despite the coronavirus pandemic slamming advertising revenues. Facebook partly offset the spending slowdown with a 12% year-over-year growth in monthly active users.

Read more: Morgan Stanley breaks down 4 reasons why the next stock bull market is just getting underway – and lays out the best investing strategy for taking advantage

Analysts also feared a July advertiser boycott would weigh on profits. More than 1,100 companies and organizations pulled spending from the platform last month, pressuring Facebook to better police hate speech and misinformation. The company’s stock tumbled in late June as the boycott’s following grew, but the losses have since been erased.

Wall Street largely cheered Facebook’s earnings results. Bank of America raised its price target for the shares to $290 from $265 following the report and praised Facebook’s sturdy revenue streams. 

“While COVID-19 disruptions, content controversy, ad boycotts, and privacy changes make for difficult headlines and [near-term] revenue risk, FB continues to show sustainable growth through uncertain times,” analysts led by Justin Post wrote in a note.

Read more: Billionaire investor Paul Tudor Jones famously earned a 4-year streak of triple-digit returns. Here are the 7 trading rules he lives by after suffering a devastating loss.

Though the boycott didn’t keep Facebook from beating estimates, it may have dented the stock’s appeal. When asked to rank the FAANG components in order of which they’d like to own the most, more than half of respondents deemed Facebook the tech mega-cap they’d least like to own.

Facebook closed at $263 per share on Monday.

Now read more markets coverage from Markets Insider and Business Insider:

No money, no education, and no connections: Here’s how Brian Burke went from a small-time house flipper to a real-estate investing magnate with over 750 deals and 3,000 units

Dow jumps 310 points after Trump says he’s weighing a capital-gains tax cut

Tesla competitor Nio erases early gains, tanks 7% as investors secure profits

coronavirus stock FBMarkets Insider

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