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