The quality of financial advice on social media platforms such as Instagram and TikTok is up for debate. But it’s not debatable that many younger investors turn to those platforms for investing advice. They also use those platforms to voice their opinions on specific stocks.
Indeed, there is something to social sentiment investing. Some professional investors harness technology to tap into social sentiment. It’s a methodology that serves as the foundation for some unique exchange traded funds. For investors wanting more traditional exposure to stocks generating buzz on social media, the Invesco QQQ Trust (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) are credible options.
Both ETFs track the Nasdaq-100 Index (NDX). That benchmark is home to an array of stocks frequently mentioned on social media. That’s certainly the case today.
QQQ, QQQM Hold Lots of Buzzy Stocks
A recent study by online trading provider City Index analyzed how frequently S&P 500 components are mentioned on Instagram and TikTok. During the study’s period, Disney (NYSE: DIS) was the leader on that front. That stock isn’t a QQQ/QQQM member firm. But several of the ETFs’ holdings are among the equities most mentioned on those social media platforms.
“The study revealed there have been 80 million views of videos with the hashtag of #disneystock, #disneystocks, or #disneyshares. That’s the highest amount out of all the 500 companies that were included in the in-depth analysis. Those views have come from 6,151 videos – the largest amount in the study – as creators discuss the company’s financial performance, and whether it is a good time to invest in the stock,” according to the firm.
Among the QQQ/QQQ holdings currently generating buzz on Instagram and TikTok, Netflix (NASDAQ: NFLX) ranked second behind Disney on the CityIndex list. The streaming entertainment giant was followed by Amazon (NASDAQ: AMZN) and Tesla (NASDAQ: TSLA). Those are the two largest consumer discretionary holdings in the Invesco ETFs.
“The strong appetite for advice and guidance on trading is demonstrated by the fact that videos on the top ten companies in the list have more than 117 million views in total,” added CityIndex. “As trading becomes more accessible to people who aren’t working in the finance industry, and following the rise of so called ‘meme stocks’ over the past two years, it will be interesting to see how the discussion of the best trading and investment opportunities continues to develop on social media.”
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