My kids are getting to the ages where they are asking questions such as “What does our house cost?” “How do credit cards work?” and “How do you make money in the stock market?” Because of the last question, I gave each of my two kids $750 to invest in whatever stocks they thought would succeed. After much debate, these are the stocks they bought and their rational (ahh the minds of teenagers) …
Apple (AAPL) – “The new phone is coming out, and I don’t know a single friend of mine who doesn’t own an iPhone.”
Starbucks (SBUX) – “My friends and I would go there every day if our parents would let us … can we go to Starbucks later this afternoon?!!”
LVMH Moet Hennessy Louis Vuitton (LVMUY) – “This is the company that owns Sephora, which is the makeup/skincare/fragrance company that my friends all buy.”
Apple (AAPL) – “Do I really need to explain why?” (Aren’t teenagers the best?!!!)
Nike (NKE) – “Everyone buys Nike clothes and shoes.”
I told the kids that we would continue to give them money to invest in the coming months and years, and to come up with a list of other leading candidates for stock buys in the future. Here is that list, and their reasoning …
Elf Brands (ELF) – “Another makeup brand that is hot.”
Lululemon (LULU) – “My favorite clothing brand.” (I can vouch for that, she has sooo many Lululemon shirts/shorts/pants.)
Celsius (CELH) – “All my friends drink Celsius, but I don’t like the flavors.”
Target (TGT) – “I could spend hours at Target. They have everything for reasonable prices.”
DraftKings (DKNG) – “I see the commercials and the betting looks cool.” (We might be having a gambling conversation.)
Uber (UBER) – “My friends are starting to take rides in Ubers and order food through the app also.”
Capital One (COF) – “You and mom use the Capital One credit card ALL THE TIME.” (He isn’t wrong, unfortunately.)
I had some follow-up questions to these stocks and company ideas but the only interesting/kind of funny exchange went the following way:
Me: What about Facebook/Meta?
Daughter: No one uses Facebook and virtual reality is so mid (translation of mid for those without teens … it’s just ok, and not cool). I would never buy Facebook!
Me: You know Facebook owns Instagram, right?
Daughter: Oh! I would definitely buy Facebook!
Now that you have a look at the inner workings of the teen brain, and what brands are “cool,” let’s take a look at how one hedge fund/institution bet that META stock is going higher this year, via a MASSIVE call buy on Monday:
Buyer of 55,000 Meta (META) November 270 Calls for $65 – Stock at 323
This call buy was a $357 million purchase that will lose money if META stock closes below 270 on November expiration. However, the trade has unlimited upside potential should META stock continue its meteoric 2023 run.
In the months to come as my teenagers change their fickle minds about which brands are “so hot” I will update this article so that you are up to date on which brands are “cool.”