Among the most famous social media platforms in the world, TikTok has amassed nearly 80 million users in the U.S. alone. Expanding out the scope to the rest of the world, the video-sharing service commands a monthly active user base of 1 billion. Invariably, the community will feature a wide variety of subject matter, including possibly viable TikTok stocks to buy.
On the surface, the platform has generated a reputation for featuring dance moves and short skits set to music. However, it’s also become a home for people to share investing ideas. That’s according to a 2021 article from the New York Times, which described so-called TikTok stocks as an informational hub for the next generation of investors.
Indeed, the community could very well be much more engaging for young and budding Gordon Gekkos, who can learn from their peers about trading tactics and strategies. Certainly, it beats reading a bunch of stale books on finance, which can be a dry topic for even the most disciplined students. Therefore, TikTok stocks offer a relevance that you might not appreciate.
For the purpose of this list, we’re going to explore the publicly traded companies that have generated significant eyeballs. To be clear, it’s not about buying or selling ideas. Rather, if you believe that the market is driven primarily by collective human emotions, these TikTok stocks could be worth your time.
- Tesla (NASDAQ:TSLA)
- Volkswagen (OTCMKTS:VWAGY)
- Kroger (NYSE:KR)
- Starbucks (NASDAQ:SBUX)
- Electronic Arts (NASDAQ:EA)
- Planet Fitness (NYSE:PLNT)
- F45 Training (NYSE:FXLV)
- Disney (NYSE:DIS)
- Royal Caribbean Cruises (NYSE:RCL)
- Petco Health and Wellness (NASDAQ:WOOF)
Of course, no investment idea is without risk. For TikTok stocks, there’s a danger of following potentially novice or erroneous guidance that only appears legitimate due to a lucky streak. What’s more, you should be aware that taking an active approach to investing is usually much riskier on average. Therefore, due diligence is your best friend.
Top TikTok Stocks: Tesla (TSLA)
Given how popular tech entrepreneur Elon Musk is on social media, it should come as no surprise that Tesla is one of the most talked about TikTok stocks. Musk has a knack for injecting himself into the conversation — no matter the subject matter — thus, organically keeping Tesla in the news cycle. It’s really a genius move.
More importantly, though, Tesla suits the younger demographic to a T. According to one survey noted by BBC News, half of young consumers want to make the switch to electric vehicles (EVs). Naturally, this is going to keep the discussion rolling on Tesla and TSLA stock.
Last year, Tesla generated $53.8 billion in revenue, representing growth of nearly 71% against the year-ago comparison. Therefore, sizable dips in the stock price could make for an intriguing long-term play, although investors should note that shares have been volatile on a year-to-date (YTD) basis.
Volkswagen (VWAGY)
Invariably, when the top contributors of TikTok make it big, plenty of them love showing folks up with their Lambos. But Lamborghini by itself is not a publicly-traded company. Instead, it’s wholly owned by Volkswagen, whose shares are tradable on the over-the-counter market.
While the namesake vehicles might not be the sexiest things on the road, Volkswagen knows how to deliver — even during the new normal, which caused the global supply chain crisis. In 2020, revenue slipped over 3% to $271.1 billion from the prior year. However, on a trailing-12-month (TTM) basis, sales are at $304.3 billion.
Over the next few years, supply chain pressures may ease up, which in turn could see greater opportunities for Volkswagen. The company has been making a pivot to EVs and of course, it still has the Lambo brand, which should make it one of the most talked about TikTok stocks.
Top TikTok Stocks: Kroger (KR)
Ordinarily, you wouldn’t think about Kroger being one of the more popular TikTok stocks available. However, according to Mediakix.com, food and beverages represent one of the biggest hashtag categories on the social media platform.
Indeed, content creators showcasing how to cook or revealing their favorite recipes is a viewer favorite on the platform. Therefore, it only makes sense that Kroger would be one of the TikTok stocks to buy. Coincidentally, KR stock is one of the few securities that have thus far posted a positive return on a YTD basis.
Looking to the future, Kroger could enjoy further upside. Yes, soaring consumer inflation has crimped sentiment. But food and other household essentials are not purchase categories that you can ignore for long. It’s cynical, but you got to work with what the market gives you sometimes.
Starbucks (SBUX)
As one of the world’s most recognizable beverage brands, Starbucks is easily one of the most popular TikTok stocks. So many videos either feature the store or have some reference to the company and its products. For the coffee shop, the platform is marketing gold.
What really drives interest for TikTok users, though, are the special or customized drinks you can order. Sharing what distinct beverages social media influencers order gives their fans an insight into their personality. I think it’s a little strange but whatever — it works for the company, driving a buzz that’s uncommon for a mature business.
In the fiscal year ended Sept. 30, 2021, Starbucks generated $29 billion in top-line sales, up more than 23% from the year-ago level. Against pre-pandemic results, the latest annual tally was up 10%, demonstrating a strong recovery from the novel coronavirus impact.
Top TikTok Stocks: Electronic Arts (EA)
It goes without saying that video games represent one of the most talked-about subjects on social media. With gaming becoming a serious business, everybody’s looking for an inside edge — and content creators are all too happy to share. Naturally, with Electronic Arts being among the biggest digital entertainment companies in the world, EA is one of the TikTok stocks to consider.
Personally, I’m a fan of the company due primarily to its EA Sports lineup. With exclusive licensing rights to some of the world’s top leagues, the gaming specialist enjoys a relevance that’s going to be difficult to seize.
In the fiscal year ended March 31, 2021, Electronic Arts generated revenue of over $5.6 billion, an increase of nearly 2% against the prior year’s result. However, on a TTM basis, the firm has posted $6.5 billion in sales.
Planet Fitness (PLNT)
It’s a common stereotype that the social media generation is rather self-centered and vain. While this personality characteristic might bother some folks, you can also use it to your advantage when it comes to TikTok stocks.
Likely, it won’t come as a shock to you that fitness and health represent one of the top hashtag categories on the underlying platform. And within this segment, the hashtag #planetfitness receives millions and millions of views.
Why so popular? While it’s difficult to pinpoint individual consumers’ core reasons, the brand features a non-judgmental ethos aimed at attracting non-gymgoers. As such, Planet Fitness tends to avoid the machismo crowd that’s only interested in showing off.
In other words, it takes fitness seriously — and is an amazing arena for social influencers to showcase their fitness tips and strategies.
Top TikTok Stocks: F45 Training (FXLV)
Staying on the fitness and health theme, F45 Training — a group-based exercise class — has taken the underlying scene by storm. That’s largely due to major backing. Hollywood A-lister Mark Wahlberg invested in the firm back in 2019 and later, former soccer superstar David Beckham became a global partner.
As one of the TikTok stocks to consider, the exercise regimen commands serious clout. As of this writing, the hashtag #f45 features 83.7 million views. Likely, the popularity stems from regular folks sharing their results with each other, which also serves as a point of inspiration.
Interestingly, FXLV stock is up 28% on a YTD basis, making it not only one of the best-performing TikTok stocks, but it’s also just a high-flyer no matter what the category. And moving forward, the declining threat of the Covid-19 crisis could see shares rise even higher.
Disney (DIS)
When it comes to absolute rear-end “kickery” among TikTok stocks, few if any touch entertainment giant Disney. Its hashtag features more than 102 billion views, which is simply staggering. One of the reasons for such dominance is that TikTok tends to cater to young users so you have the nostalgia effect to go on.
As well, the company owns valuable franchises like Star Wars, which invariably inspires skits featuring classic characters from the science-fiction movie series. Combined with Disney’s theme parks and resorts, social influencers have plenty of material to work with.
For the year ended Sept. 30, 2021, Disney posted revenue of $67.4 billion, which was down 3% from the fiscal year before the pandemic. But on a TTM basis, the company is looking at sales of nearly $73 billion, which is about 5% higher than the most recent pre-pandemic year.
Top TikTok Stocks: Royal Caribbean Cruises (RCL)
I’m going to be straight up with you folks: I’m not entirely sure what to make of the cruise ship industry considering the hefty losses that it has taken. Nevertheless, if we’re simply talking about TikTok stocks, it’s unavoidable. One of the sector’s biggest names, Royal Caribbean Cruises, happens to be a very popular topic.
While it’s no Disney, the hashtag #royalcaribbean commands nearly 500 million views. Why are so many people interested in cruise ships, when the platform is stereotypically associated with older people? Well, bang for the buck could be one reason. Another factor is that travel-related content is one of the biggest hashtag categories on TikTok.
Still, you should be very careful with RCL stock. Before the pandemic, the company generated revenue of nearly $11 billion, with net income of almost $1.9 billion. Last year, the company only posted $1.53 billion in sales and a staggering loss of $5.3 billion.
Petco Health and Wellness (WOOF)
Americans love their pets, and that’s especially true for millennials. According to a YPulse survey, the vast majority of millennials — 76% of them — are pet parents. Breaking it down, more than half reported having a dog, and 35% own cats. Naturally, with such a robust user base, Petco Health and Wellness is one of the top TikTok stocks.
As you might expect, animals rank among the biggest hashtag categories on the video-sharing service and #petco itself has nearly more than 317 million views at this moment. The amount of antics that pet owners put their furry friends through in Petco stores across the nation knows no bounds but I suppose that’s the charm of it.
Though on paper WOOF stock should be killing it, right now, it’s getting killed due to the multiple pressure points in the global markets. However, once circumstances normalize, Petco could swing higher.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.