What Is #StockTok? Why Parents Need To Be ‘Skeptical’
By Movieguide® Contributor
A new community is emerging on TikTok. What is #StockTok, and what should parents know?
“StockTok” is an online community for Gen Zers who are interested in trading stocks — something that became popular after the now-infamous GameStop stock price inflation.
“In a May survey from the CFA Institute, a global trade association for investment advisors, more than half of Gen Z respondents said they were already investing, and 82% of American Gen Z investors said they began investing before they turned 21,” BusinessInsider wrote. “That’s significantly higher than the 31% of millennials and 14% of Gen Xers who said in a 2018 survey they began investing at that age.”
While some parents might be pleased that their kids are taking an interest in the stock market, experts have some warnings.
A report from WallStreetZen found “a worrying pattern: much of the stock advice on the platform is not only misleading but also potentially hazardous for inexperienced investors.”
They found that nearly two out of three StockTok videos are “misleading,” while 95% do not have any kind of disclaimer posted.
“Alarmingly, StockTok content paints an unrealistic picture of potential returns: 22% of StockTok videos imply returns on investment, with an average annual potential return of 600% being advertised,” WallStreetZen wrote.
FastCompany reached out to TikTok for comment but was referred to the app’s “helpful tips page for financial disclosures, which appears when users search for stock-related information. The page warns users, among other things, to ‘be careful of content that may promote fraudulent products and services.’”
Professional stock analyst and finance TikToker Robert Ross told Time, “A lot of people who are new to investing think this type of price action is normal. But really, it’s not,” referring to the skyrocketing prices in GameStop and AMC stock.
“People are giving away this information for free, because that’s probably what it’s worth,” he warned. “For the most part, creators on finance TikTok are kind of winging it to try and build an audience. So people need to be really, really skeptical of who they follow and always do their own research when getting advice from anybody on social media.”
Movieguide® previously reported on how TikTok harms Gen Zers financially:
As Gen Z women spend more time on TikTok, the content they consume on the app is redefining how they shop and spend money.
Ellyn Briggs, a brand analyst at Morning Consult, explained, “TikTok is a Gen Z women-centric app, and it is setting the tone and the narrative for what is ‘hot’ online.”
“The bigger conversation is just how impactful our digital lives are on our real lives,” she added. “TikTok is driving consumption patterns in a very real way.”
“TikTok has significant influence on how the young generation spends its money, with #TikTokmademebuyit garnering more than eight billion views,” CNBC reported.
Morning Consult also found that “A larger share of Gen Z women, 75%, use TikTok compared to their male counterparts, 62%.”
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.
What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.
You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.
Movieguide® is a 501c3 and all donations are tax deductible.
