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Millennials are More Invested in Cannabis Than Twitter and Netflix

Millennials are More Invested in Cannabis Than Twitter and Netflix
Green Rush Daily


Millennials are More Invested in Cannabis Than Twitter and Netflix

While holdings of tech and media giants fall or hold steady on Robinhood, weed companies have seen explosive growth over the last few weeks.

Now that trading apps like Robinhood have put the continent’s biggest exchanges in the palm of their hands, more millennials are investing in the stock market than ever. But there are certain industries that seem to be attracting more young people than others. A lot more, in fact.

Young Investors Flock To Cannabis Stocks

Media and tech are perennially popular among young traders. Shares of Netflix, Twitter and Amazon all rank in the top twenty in terms of investor popularity on Robinhood. But besting all of them is the Canadian cannabis company Cronos Group (CRON).

With a market capitalization of $2.07 billion, there were 122,122 owners of Cronos shares on Robinhood at last count. Compare that to Netflix’s 108,475 or Twitter’s 117,365. Cronos now ranks eleventh out of all stocks on Robinhood.

But total investors is only part of the picture. Perhaps more striking is the growth in shareholders for those companies over the last month and a half. While Amazon’s investor growth has held steady with just a 1 percent increase, holders of Netflix and Twitter shares on Robinhood declined by 6.1 percent and 2.5 percent, respectively.

Meanwhile, Canada’s cannabis giants have seen surges in ownership growth over the same period. Most impressive is Canopy Growth Corp, which saw a 144 percent increase over six weeks. Cronos, the most popular cannabis stock on Robinhood, saw a 95.9 percent growth in ownership.

Even newer listings are performing remarkably well. Listing just two weeks ago on September 6, owners of Aurora Cannabis increased more than twofold, from just under 35,000 to 77,258. And after an appearance on “Mad Money” by CEO Brendan Kennedy, Tilray continues to climb the ranks from the humble 81st place it began at on August 23rd.

Holding true to the adage about rising tides, smaller companies are also enjoying a lift from young traders. Take 22nd Century Group, for example. With a market cap just under $340 million, ownership growth in the company has increased 11 percent since early August.

What’s Driving Millennial Interest In Cannabis Investing?

Some are calling the recent surge in the popularity of cannabis stocks among young investors a repeat of last year’s frenzied run of cryptocurrency investing. And while there are certainly similarities, there are multiple factors driving investments in cannabis, and among millennials in particular.

Announcements of imminent U.S. listings, partnerships with established brands like Coca-Cola and Corona, and Canada’s landmark federal cannabis law have driven investments in the cannabis industry across the board.

But for millennials, there’s a sense that cannabis legalization is a watershed event, that this is the generation’s defining moments. And for sure, the younger a person is, the more likely they are to support legalizing weed. Millennials are experiencing the transition out of prohibition and recognizing the extraordinary economic potential of a legal cannabis industry. Plus, weed is popular already. No wonder investing in cannabis is, too.

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