Why Apple, Amazon and the meta platforms gave up today

What happened

Wednesday is shaping up to be another tough time for tech stocks. With the Nasdaq Down 2.2% as of 11:45 a.m. ET, shares of several of the biggest names in big tech are falling in tandem:

  • Apple (AAPL -1.85% ) is down 2.1%.
  • Amazon ( AMZN -3.23% ) is 3%.
  • Metaplatforms (FB -3.68% ) loses 3.6%.

Image source: Getty Images.

So what

And yet, in the absence of much news obviously affecting these three stocks (other than the widespread sell-off in tech), there really seems to be good reason for just of them of those stocks down today. You see, if there’s a common thread running through Apple, Amazon, and Meta today, it’s the fact that these three tech giants were featured prominently in Piper Sandlerjust released the 43rd semi-annual Gen Z survey of 7,100 American teens.

In this survey, which Piper began more than two decades ago, the investment bank tracks the sentiment of American teens and Gen Zers toward major American consumer brands, based on the theory that a stock popular with a young and growing segment of the US population will logically outperform a declining stock. And what does Piper’s latest investigation reveal?

Well, first and foremost, he finds that teens are a huge market, spending both time and money — $2,367 each a year — on the brands they love.

Now what

This is good news for Apple. According to Piper’s survey, 87% of American teens now own an iPhone, and they’re getting more and more invested in the brand. Seventy-two percent of teens also own AirPods — and Apple Pay is now the top-ranked payment app among teens in the US

It’s less good news for Amazon and Meta, however, in that order. In the case of Amazon, on the positive side, Amazon.com “still remains the #1 website” among teens, with 53% of teens surveyed liking the site. In a worrying trend, however, teenage girls’ affinity for Amazon has dropped sharply over the past year, from 47% to just 35%. In short, teens still love Amazon.com, but only boys.

Meanwhile, for Meta, the news only gets worse. Teenagers have their own language that is largely incomprehensible to the rest of us, but one thing that has long been clear is that they see the social media site Facebook as primarily for “old people”. , is not it ?

Well, to combat that, Meta Platforms bought the then booming Instagram in 2012. But that was ten years ago, and Instagram may not be the hot property it once was. According to data from Piper, Instagram fell to third place behind TikTok and BreakSnapchat in popularity among teens – and over the past year, Insta has even lost Continued teenage mindshare.

In the context of a stock market which was already falling this morning, this is not the news that the shareholders of Amazon and Meta wanted to hear.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.

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