The ongoing rally on Wall Street, where major indices hit a string of new record highs, was largely driven by young new investors using free trading apps like Robinhood.
When you consider that Millennials, combined with younger Gen Z counterparts, make up more than 50% of the US population, this new group of private investors is a force to be reckoned with.
As such, here are three innovative stocks that Millennial and Gen Z investors can't get enough of. All three have the potential to disrupt their respective industries in the years to come, making them solid choices for the long term.
1. Chewy: Largest US Online Pet Products Retailer
Chewy (NYSE 🙂 appeals to young investors for two reasons: they love shopping online and they love their pets.
The company, which held its IPO in June 2019, has seen its stock rise nearly 290% in the past 12 months, while an increase in pet ownership amid the coronavirus translated into a greater demand for pet products.
According to the American Pet Products Association, 67% of American households currently own some type of pet. By digging deeper, from a generation perspective, Millennials and Generation Z now together form the largest segment of pet owners, with that trend likely to continue to grow in the coming years.
CHWY stock, which hit a record high of $ 115.23 on January 15, ended Tuesday at $ 101.76, giving the Dania Beach, Florida-based pet e-commerce company a valuation of $ 42. 8 billion.
As a sign of how well Chewy & # 39; s business has performed over the past year, revenues have been generated that exceeded sales expectations in each quarter of 2020.
The pet products retailer, which offers customers a wide range of different animal feeds for different animals through its website and mobile applications and delivers shipping direct to their door, should continue to perform well in the coming months , given the projected increase in US spending on pets.
Chewy next reports earnings on Tuesday, March 9, after US markets close.
The consensus calls for a loss of 10 cents per share for the fourth quarter, less than a loss per share of 15 cents in the same period a year ago. Revenue is expected to grow approximately 45% year-on-year to $ 1.95 billion, driven by growing demand for its Autoship service. Autoship allows customers to save money by placing a recurring product order. It also provides the company with a future income stream.
In addition to the top and bottom line numbers, investors will keep an eye on Chewy & # 39; s update regarding its active customer accounts to see if it is his scorching pace of growth.
After adding a record 1.2 million net new customers in the third quarter, the online pet food and beverage provider had 17.8 million active users, an increase of nearly 40% from the same period a year ago.
2. Farfetch: Leading Online Retail Platform for Luxury Fashion
Farfetch (NYSE 🙂 is a fast-growing retail platform that sells products from nearly 1,300 of the world's top brands, boutiques and department stores. According to the luxury e-commerce company, nearly two-thirds of its shoppers are millennials of Gen Z.
FTCH stock – which debuted on the New York Stock Exchange in September 2018 – more than quadrupled in value by 2020, with a 516% increase, as consumers from all over the world flocked to the online market platform during the coronavirus shutdown. 22, giving the London-based online fashion e-tailer a market cap of approximately $ 21.2 billion.
Despite the monstrous rise in the share price, Farfetch appears to be continuing its advance, given its emerging status as a dominant name in the online fashion industry, thanks to its enormous popularity with young fashion savvy consumers.
The company's recently announced partnership with Chinese e-commerce giant Alibaba (NYSE :), to accelerate expansion into China, is another promising development, with the Asian nation fast on track & # 39 the world's largest market for luxury goods and products.
Farfetch erupts third quarter financial results on Nov. 12, taking advantage of the COVID-19 pandemic accelerating the shift of luxury consumption from brick-and-mortar stores to online outlets.
Sales are up 71% over the same period last year to $ 437.7 million, easily surpassing estimates of $ 365.5 million. Gross trading volume on its platform – a key metric used in the e-commerce industry to measure transaction volumes – was up 62% year-on-year.
Fourth quarter results are scheduled to be published on Thursday, February 25, after the close of bubble. Consensus estimates call for a loss per share of 13 cents per share on revenue of $ 516.4 million, 35% more than a year earlier.
3. Roku: Fast-Growing Streaming Media Platform Provider
Roku (NASDAQ 🙂 is one of the best performing companies in the market due to the rapid growth in numbers users – especially among millennials and Gen Z consumers – which has translated into higher ad revenue for the streaming media platform provider.
After gaining 375% in 2019, the ROKU stock has more than doubled in 2020, by 165%, and in the first month of 2021 it is up another 7%
Despite the huge gains made in the past 24 months, we expect ROKU shares to rise in the new year as the current business environment has created a perfect backdrop for the streaming media platform to thrive.
Shares were settled last night at $ 418.75, ahead of their all-time high of $ 448.17 that was reached on January 22nd. At its current level, the San Jose, California-based streaming video pioneer has a market cap of approximately $ 55 billion.
Roku reported positive revenue surprises for last year, exceeding Wall Street's revenue and revenue expectations due to strong growth in ad-supported video-on-demand services.
The streaming video platform reports financial results Thursday. Feb. 11, after the close
Consensus estimates call for a loss of 6 cents a share in the fourth quarter, better than a loss per share of 13 cents in the same period a year ago. Revenues are expected to grow 49% year on year to $ 613.5 million.
In addition to the top and bottom line numbers, investors should pay close attention to Roku & # 39; s update regarding its active user accounts. as well as Average Revenue Per User (ARPU) – two important metrics for the streaming company.
Roku & # 39; s active accounts were up 43% year-over-year from the third quarter to 46 million, while the ARPU came in with a double-digit percentage gain, 20% from a year earlier to $ 27.
