Young Investors could save failing media and Tech stocks
By: Jen Samuels, Xiro Xone News January 30, 2018 Updated: 8:22 AM PT
According to JM, the head of a private investment group under 30, “young investors who are ardent users of Facebook and Twitter, could be the group that rescue those companies if their stock started sinking. However, they are also one of the groups shut out of the IPO’s of both company.”
The investors are twenty-something college grads. “We are likely to hold stock longer than older investors who get-in make money, then get out.” “Unlike older investors who are only loyal to money, we factor in brand loyalty and social fads.” “It may seem uncanny, but it’s done in a sensible way” said, JM.
“Social media companies considered trendy by young people, offer IPO’s that make the developer rich, and connected investors a profit because they got in on the ground floor. Once the excitement and popularity wear off, the company’s stock sometimes decline which can spell disaster for a company.” “We think the savior for these companies could be, young investors who want in on the party at the IPO stage. This would mean brokerage firms hiring young, cool, hip and honest brokers or liaisons that can explain stocks and investments to wealthy young people in very simple terms, never making them feel unintelligent” continued JM.
“I know 21-30 year olds who want to make their own investment decisions. They don’t want to risk being churned, or played” said, JM. William, a young broker who just received his series 7 said, “Where I work, there’s two of us under 25 with a series 7.” “I plan to concentrate on wealthy young people who want to play the market.” Those who did not grow up wealthy or do not have a built-in financial support system tend to have trouble finding someone they, believe they can trust and will not make them feel ignorant.
Most wealthy people allow money managers or investment brokers to pick or suggest investments for them. When we asked young potential investors why they don’t do the same, they said, “I made the money and I will invest it when, where, and in whatever I want.” Overall, they had a “its none of anyone’s business,” response.
Another young would be investor with a substantial monthly allowance admitted, “I’m afraid I will get screwed by slick brokers.” “I’d rather take a group of friends on a private jet shopping in Paris every week than make a slick broker use my money to get rich.” Some of these would-be investors rather waste money doing outlandish things or sharing it with an entourage rather than, make investments that could secure their financial future.
“If companies issuing IPO’s were to recognize the benefit of making sure young investors had the same opportunity to purchase at the IPO price, it could strengthen their stock through brand loyalty, and may give start-ups that tend to fail within the first five years, greater longevity,” said William.
23. the baby boomer generation and most yuppies worked 2-3 years to payoff college debt, cars, or buy a house. Today, wealthy 21-30 year olds can do those things at the drop of a ball, digital download, or app.
The 21st century rich and wealthy, are earning that title at a younger age. Thanks to savvy software and platform developers, young sports figures, and high grossing entertainment tours, these young people are hip, single, and lack financial guidance. They are capable of shelling out $10,000.000 to buy a yacht, private plane, a piece of property or various forms of bling, on a whim, and make more money at a faster pace than earlier generations, have a higher level of disposable income than their parents, and most notable, they are not afraid to gamble with it.
These are the investors who could save declining social media stocks like twitter. On November 7, 2013, twitter’s initial public offering (IPO) was, $26.00, it opened at $45.10. At the closing bell on January 23, 2018, twitter (TWTR) stock was only, $22.75.
Ninety percent of social media users have a Facebook account, and 75 percent of those users exist on twitter, instagram, linkedin, or some other online platform. Investing in social media companies is like investing in themselves. But they don’t want to be used as an after thought. Margaret with NMI said, “buying and holding Facebook or Twitter stock would be a cool status symbol, especially if, investors and their friends are heavy into social media and have Facebook and Twitter accounts.
In May 2012 Facebook (FB) IPO was, $38.00 but on January 23, 2018, it closed higher at $189.35 proving it was worth the purchase. Mark Zuckerberg and employees got rich and IPO investors made great profits. To that, WM said, “I challenge anyone to show me one American citizen under age 25 working a regular 40 hour job, who had no affiliation in any way whatsoever with anyone connected to Facebook, Twitter, a broker or firm, who purchased Facebook or Twitter at the IPO price on day one, I will admit I am wrong about everything I’ve said here, and treat them to lunch.”