The Real Reason Big Tech Dominated The Market In 2020

FN Media Group Presents Oilprice.com Market Commentary

LONDON, Dec. 30, 2020 /PRNewswire/ -- Nearly every aspect of our lives has been transformed in 2020. But there are few places where the change has been as dramatic or all-encompassing as in the stock market.  Mentioned in today's commentary includes:  DoorDash, Inc. (NYSE: DASH), Uber Technologies, Inc. (NYSE: UBER), Airbnb, Inc. (NASDAQ: ABNB), Lyft, Inc. (NASDAQ: LYFT), Grubhub Inc. (NYSE: GRUB).

As any trader will say, fundamentals in 2020 appear to have become almost entirely irrelevant, ESG investing is now the single biggest trend impacting stocks, and traditional industry giants are under attack. But while all of that was going on, another remarkable trend has taken over stock markets – the billion-dollar stock boom.

From Airbnb (ABNB), to DoorDash (DASH), Facedrive (FD.V ; FDVRF) and Tesla, public markets are sending a certain type of company soaring beyond the competition – and investors who listen are creating multi-generational wealth.

The Billion Dollar Secret

So what is it that all these companies have in common? Why are they worth such a premium on the public market? And who are the experts on this new trend?

First and foremost, this is a phenomenon that is fully focused on tech stocks. More specifically, it is focused on tech stocks with an ambitious promise, an ESG focus, and a big pull amongst millennial and Gen Z investors. That final part, as it will soon become clear, is of vital importance.

The way that each of these companies has managed to secure such a premium on the public market is by targeting a huge group of relatively new and extremely loyal investors who are holding for the long term. This is a recent phenomenon, but one that each of these companies has taken advantage of in a big way.

Surprisingly, the experts on this trend aren't the big banks, hedge funds, or market analysts. Instead, it is a group that Jim Kramer recently described as "probably more powerful than any single investment firm right now". Specifically, Kramer was referring to a Reddit group called Wall Street Bets, but the real trend is slightly bigger than that, a new group of millennial and Gen Z investors trading on platforms like Robinhood and sharing investment advice in the form of memes and TikTok videos.