- Reuters / Mario Anzuoni
- Markets Insider asked hundreds of millennial investors which FAANG stock they’d own if they could only pick one.
- While Amazon was the resounding top choice, Facebook and Netflix found themselves mostly unloved by millennials.
- Visit the Business Insider homepage for more stories.
Out of 322 panel respondents, only nine said they’d choose Netflix ahead of its mega-cap tech brethren. That’s not 9%, that was literally just 9 out of 322 people. Facebook fared even worse, drawing just seven selections.
On the other side of the spectrum was Amazon, the runaway top choice with 164 affirmative responses. Alphabet was the second-most-popular choice with 99 votes. Meanwhile, Apple occupied the middle ground, with 43 respondents selecting it.
The participants are enrolled in Markets Insider’s panel of more than 3,000 millennial investors, which is not to be taken as a poll or survey. To qualify, the respondents had to be millennial-aged, holding an active brokerage account, such as one with a financial-services provider like Robinhood or Fidelity. The panel was asked about their views on the FAANGs in mid-August.
Here’s a rundown of recent developments for the companies in question, which could help to contextualize the opinions held by our millennial panel:
Netflix: Streaming competition is cranking up
Netflix has seen several popular shows pulled from its platform as companies such Comcast and Disney prepare to release their own streaming services.
That competition has manifested itself in subscriber shrinkage. Shares of Netflix plunged in July after the company reported its first quarterly decline in US subscribers since 2011. The miss brought into focus the company’s ability to not only add new users, but to also maintain existing customers with it content offerings.
Netflix’s stock also took a hit in September after Apple said its streaming platform would cost $4.99. The figure was much lower than expected and cheaper than any of Netflix’s offerings.
Shares of Netflix are up just 3% year-to-date, lagging the S&P 500’s gain of roughly 20%.
Facebook: Antitrust regulators are circling
Over the last several years, Facebook has come under immense scrutiny over how it collects and harnesses consumer data, as well as whether the company has prevented competition through its acquisitions.
Shares of Facebook tumbled in September after New York Attorney General Letitia James said her office was coordinating a multistate antitrust probe into the company.
The announcement came on the back of Facebook’s $5 billion settlement with the Federal Trade Commission over its handling of consumer data in the wake of the Cambridge analytica scandal.
The probe includes eight states and Washington, D.C., and its expected to focus on Facebook’s data practices and whether the company stifled competition through acquisitions.
Despite the rising antitrust pressure, shares of Facebook are still up more than 40% year-to-date.
Amazon: Next-day shipping is next growth frontier
Amazon pushed the entire retail industry to shrink delivery times for ecommerce orders with its two-day Prime shipping program. Now, analysts see its next-day shipping as a huge catalyst for revenue growth.
RBC Capital Markets analyst Mike Mahaney expects the initiative has the potential to create as much as $24 billion in revenue for the ecommerce giant.
Amazon began offering next-day shipping in June after saying in April that it planned to spend $800 million to shave a day off its Prime two-day shipping guarantee.
Mahaney said the company is likely making one-day shipping a priority because customers are expecting accelerating delivery options and greater convenience.
Amazon’s stock price is up more than 20% year-to-date.
Alphabet/Google: Cloud business is booming
The company’s annual revenue run rate for its cloud business grew to $8 billion during the period. Ruth Porat, Alphabet’s senior vice president and chief financial officer, said on an earnings call that the Google Cloud Platform “remains one of the fastest-growing businesses in Alphabet.”
On the other hand, Google is also facing an investigation from 50 state attorneys general over potential anticompetitive practices in its ad business.
Shares of Alphabet are up roughly 19% year-t0-date.