Investors are always on the hunt for the next big trend in the market, and younger Americans are often the trendsetters. Piper Sandler recently surveyed more than 10,000 American teens to identify where they are eating, shopping and spending their time online. The survey found about a third of U.S. teens already have part-time jobs and teens spend about $2,213 per year.
However, Generation Z’s financial impact on the economy will only increase over time as their spending power grows. These seven stocks represent top brands among teens that could make them excellent long-term investments:
McDonald’s Corp. （MCD）
McDonald’s is the world’s largest fast food company by revenue, and it is very popular among American teens. While privately owned Chick-fil-A was the top chain restaurant choice for 17% of teens surveyed, McDonald’s was second at 11%. Although inflation has driven McDonald’s prices higher in recent years, the restaurant’s affordability may be its biggest selling point for younger customers, and the McDonald’s value menu certainly won’t break the bank. McDonald’s has also embraced technology such as online ordering, kiosk ordering and app rewards that provide convenience for teen customers. And of course teens love McDonald’s iconic french fries.
LVMH Mo?t Hennessy – Louis Vuitton, Société Européenne （OTC: LVMHF）
LVMH Mo?t Hennessy Louis Vuitton produces and sells a wide range of luxury goods, including wines and spirits, fashion accessories, perfumes, cosmetics, watches and jewelry. Its leading brands include Louis Vuitton, Christian Dior, Hennessy and Mo?t & Chandon. LVMH is also the parent company of Sephora, which 40% of American teens named as their top beauty destination. Ulta was a distant second at 26%. Sephora has leaned into social media marketing, leveraging influencers to create brand value on TikTok and YouTube. While law-abiding teens have no use for Hennessy, 7% of teens also named Louis Vuitton as their preferred handbag brand.
Tapestry Inc. （TPR）
Tapestry is the parent company of luxury brands Coach and Kate Spade New York. The company produces accessories, handbags, footwear, fragrances and other products. Not only is Coach the top handbag brand among teens, it appears to be gaining popularity. Piper Sandler found 43% of teens prefer Coach handbags, up from just 23% the previous year. Louis Vuitton was a distant second. Coach seemingly hits the sweet spot of affordable luxury that appeals to younger consumers. The brand is financially accessible without sacrificing appearance or quality. Coach’s Tabby and Coachtopia handbags have reportedly become particularly popular among Gen Z shoppers.
Amazon.com Inc. （AMZN）
Amazon is a market leader in e-commerce and public cloud services. When teens were asked where they prefer to do their online shopping, it’s certainly no surprise that 53% named Amazon.com. No other online destination was even close, although 5% named Nike and another 5% named Shein. When it comes to younger consumers, Amazon has mass appeal on a number of different fronts. With an Amazon Prime subscription, teens can get fast free shipping on millions of affordable items from Amazon’s marketplace. They can also access streaming music and video content on Prime Video and Amazon Music.
Nike Inc. （NKE）
Nike is the world’s leading designer and producer of high-quality athletic footwear, as well as athletic apparel and accessories. Nike.com may be no competition for Amazon when it comes to online shopping; however, 26% of teens named Nike as their top clothing brand, and 46% of teens named Nike as their top footwear brand, beating out Adidas. Nike has a number of celebrity athletes signed to endorsement deals, but the Piper Sandler survey suggests one athlete in particular may be doing the heavy lifting among teens. LeBron James was ranked the No. 2 celebrity and influencer among teens surveyed. Adam Sandler, for what it’s worth, was the No. 1 celebrity – an actor and film producer who is also known for his affinity for casual athletic attire.
Netflix Inc. （NFLX）
Netflix has more than 325 million subscribers and is one of the world’s largest media companies. Several heavy hitters in the media and technology space are fiercely competing for the attention of Gen Z when it comes to streaming video, and the Piper Sandler survey suggests Netflix is currently winning that war. The survey found 30% of teens prefer Netflix for streaming video, narrowly edging out Google’s YouTube at 27%. The gap may be narrow, but the numbers are unchanged from the previous year. Netflix has plenty of exclusive, original coming-of-age content that may be particularly appealing to teens.
Meta Platforms Inc. （META）
Meta Platforms is a market leader in social media and online advertising and is the owner of Facebook, Instagram and other platforms. For better or worse, social media has come to define the Gen Z generation, and social media advertising and data collection will play a major role in the future economy. Piper Sandler found the most popular social media platform among teens is privately held TikTok at 46%. However, Meta’s Instagram came in second at 31%. Facebook may be the social media platform of choice for older generations, but WiFiTalents estimates 72% of U.S. teens use Instagram daily.
