An entire generation of new investors have been dipping their toes into the the stock market for the first time in recent years. Unfortunately, millennial stock favorites Apple (AAPL), Tesla Motors (TSLA) andWalt Disney (DIS) have been dragging down these young investors’ returns.
Apple (AAPL)
Last year, T.D. Ameritrade released data on the top stock holdings of each generation of investors. Not surprisingly, the top holding for millennials was AAPL. In fact, Millennials on average owned nearly six times as much AAPL stock as any other stock!
How’s that working out? In the past year, AAPL stock is down 24% on fears that the iPhone market may be slowly reaching its saturation point. In fact, AAPL posted its first revenue drop in 13 years last quarter as iPhone sales fell 16%. AAPL is constantly branching out with new products and services, but the iPhone still single-handedly accounts for roughly two-thirds of the company’s total revenue.
With more than $200 billion in cash on the balance sheet, a P/E ratio of around 11 and a 2.3% dividend yield, AAPL stock looks relatively cheap. The bad news for millennials is that the market seems uncertain about the upcoming iPhone 7 cycle and unsure of the next major long-term catalyst for the stock.
Tesla (TSLA)
Not surprisingly, T.D. Ameritrade found…
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