‘Stockfluencers’ impacting popularity of company shares on TikTok
Companies including Tesla, Disney, Apple, Amazon and Microsoft are benefiting from the rise of ‘StockTok’ videos on TikTok, with ‘millions of young people turning to social media platforms like TikTok for investment advice’, according to a new survey.
A new league table compiled by Money.co.uk reveals the companies that are most searched on the micro-video site, which it says is an indicator of the companies that are ‘benefiting from TikTok investors and StockTok.’
In the number one spot is Tesla, with the hashtag #teslastock reaching more than 35 mn views at the time of the research. Movie theatre chain AMC is the second-most popular company for TikTok investors, reaching 12.5 mn views on the app for #amcstock, while GameStop, which became a meme stock hit on Reddit, had 9.3 mn views on the hashtag #gamestopstock at the time of the Money.co.uk research.
NIO and Disney round out the top five with 7.7 mn views and 4.6 mn, respectively.
‘With viral content created around stocks every day on the app, share prices are expected to rise among these 20 companies, showing the impact TikTok has on the financial world,’ say the researchers.
‘Stockfluencers create content on various topics, including financial planning, passive income and real estate,’ says Salman Haqqi, personal finance expert at Money.co.uk, in a statement accompanying the research. ‘With the vast reach afforded to them by platforms like TikTok, these influencers are not only helping to shape a generation of young investors but can also impact the popularity of company shares.’
He warns, however, that while TikTok ‘is positively impacting attitudes to investing’, potential investors need to do thorough research before investing in any company.
A Charles Schwab survey in April found that among the influx of millions of new retail investors entering the stock market since the start of the Covid-19 pandemic, many were making risky decisions as they looked for short-term gains.