Apple AAPL, +0.50% is the most popular stock among TD Ameritrade Corp.’s AMTD, +1.89% young investors, TD chief executive, Fred Tomczyk, said Tuesday in an interview with CNBC. Tesla Motors Inc. TSLA, +1.06%, Amazon.com Inc. AMZN, +1.80% and Alibaba Group BABA, +0.45% round out the top four, a company spokesperson said.
In fact, five of the top 10 stocks held by investors from the so-called millennial generation are active in the field of information technology, which is a slightly more tech-heavy line-up than that held by baby boomers, company data shows.
Baby boomers tend to favor more traditional tech stocks like IBM Corp. IBM, -0.21% , Microsoft Corp. MSFT, +1.43% and Intel Corp. INTC, +3.04% , although both generations show a similar level of interest in Facebook Inc. FB, +1.34% and Twitter Inc. TWTR, +0.86%. It’s a pattern that is reflected in a recent survey by E*Trade Financial Corp. ETFC, +3.27%, which ranks the technology sector as the second most popular among investors below the age of 34, just behind energy and ahead of health care.
“They are young, very tech-savvy, and more likely to invest in companies that are embracing or leading in new technology,” TD Ameritrade managing director Nicole Sherrod said in a recent interview. That should be a relief for trading-platform executives, who have struggled for some time to get younger people interested in the stock market. Millennials were scarred by the 2008 financial crisis, as many were entering the workforce just as Lehman Brothers employees were packing their boxes and leaving the bankrupt brokerage.
“This is a generation that is much more aware of the pitfalls of the past,” said Dave Whitmore, head of active investor education at E*Trade. But it’s also a generation that has grown up with technology embedded in its everyday life. The popularity of companies like Apple and innovators such as Elon Musk, and the shift of trading to mobile devices and away from desktops, is helping to spark their interest.