students on smartphones

New Investors Find Community on Social Media

Traders Chat on TikTok, Reddit, and Discord

Individual investor trading has skyrocketed during the coronavirus pandemic, and instead of meeting in person to discuss potential trades, some investors have turned to TikTok, Twitter (TWTR), Youtube (GOOGL), Reddit, Instagram (FB), and Facebook. The forums and video posts are reminiscent of the 1990s chat rooms that helped usher in the tech-stock bubble, but analysts say today’s online communities are even more powerful. Some analysts credit online forums with bringing triple-digit gains to certain companies last year.

During pandemic lockdowns, some new investors have been drawn to the community that online trading forums have provided. As unemployment and restrictions on activities continue to impact millions, many are trading for the first time as a way to make money and feel connected to others.

NIO Among Most-Searched Stocks

For illustrative purposes, let’s look at Chinese electric-car-maker NIO (NIO). On TikTok, posts tagged #nio have been viewed more than 33 million times, and NIO is also one of the most-searched stocks on Google. The company’s share-price performance for 2020 almost directly mirrors a chart of its mentions on Twitter.

At the start of 2020, NIO’s US-traded American depositary shares traded at less than $4. Last week the securities closed at a record $58.92, and NIO was the second-most-traded stock on Fidelity Investments’ retail-trading platform. The company’s market value of $92 billion is now higher than that of American auto giant General Motors (GM).

Looking for Community, Individuals Flood the #stockmarket

Some analysts believe that individual investors mainly influence smaller, speculative stocks. When it comes to NIO, some say individual interest has driven the company’s value too high, while others argue that individual investors are riding the tail of the company’s gains, not driving them.

Despite the debate, and the uncertainty about what 2021 will bring for markets, it is clear that investment momentum is building online. In January posts tagged #stockmarket on TikTok were viewed more than 800 million times—more than three times the views for similarly tagged posts three months ago.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender