Millennials don’t just love binge-watching Netflix, they also love to binge on its stock, according to trading app Robinhood.
Retail investors are generally bullish going into Netflix’s earnings report on Monday, with 1.4 times more buying than selling, according to Robinhood. But those 30 and under are 30% more likely to buy Netflix stock than those over 30, and they are doing 1.6 times more buying than selling. Robinhood also found that those in California were more likely to buy Netflix.
It probably helps these young investors’ outlook that Netflix has become ubiquitous among their age group. In a recent survey of US college students, commissioned by LendEDU, only 8% of respondents said they didn’t have a Netflix account. That means that a whopping 92% have Netflix. Netflix is also the most popular video platform among teens, beating out both YouTube and cable TV in a recent Piper Jaffray survey.
Wall Street analysts are expecting Netflix’s subscriber growth numbers, the big focus for investors, to come in at around the company’s guidance.
Netflix isn’t the only stock favorite among millennials. Following Snapchat parent company Snap’s IPO, young investors were out in droves to buy.
“I bought it even when I was pretty positive I would not make a profit in the short run, but just because I am a fan of the product,” Chris Roh, a 25-year-old software engineer in San Francisco, told Reuters.
“Snap’s IPO revitalized investing among the younger generation,” Robinhood cofounder Baiju Bhatt told USA Today. “We also saw a surge in new accounts, with many new customers opening up their first brokerage account.”
But investing in Snap has been a rocky road for these young investors so far. After closing at over $24 per share on its first day of trading, Snap has languished, and is trading at around $20.