由 jpichiban Mon, 17 Feb 2025 14:11:29 GMT
It’s not too early for investors to start thinking about the impact of Generation Alpha on stocks, according to UBS. The generation, born between 2010 and 2024, is likely to be the largest of its lifetime, analyst Saranja Sivachelvam said in a note Wednesday. It is also the first to be born into a high-tech world of artificial intelligence, augmented reality and social media. An estimated $5.39 trillion is spent annually on the generation, as of 2024, and is projected to grow by $10 billion every year — surging past $5.46 trillion by 2029, according to research firm McCrindle . “This suggests that their direct and indirect spending decisions could have a wide impact on industry with immediate effect, with this influence getting stronger over time,” Sivachelvam wrote. “Their potential influence over, and combined spending power with, their Millennial (Gen Y) parents could make them an attractive consumer segment to understand early, and may drive trends that we are currently unaware of.” The firm sees three key areas where the generation differs from previous ones or can make a meaningful impact at the household level: gamification, wellness and sustainable living. Gamification Some 94% of Gen Alpha play video games, more than any other generation, according to a 2024 global study by Newzoo, a provider of video game data. They also engage in video games in different ways more so than their older counterparts. That could include following gaming channels or esport broadcasters, listening to gaming podcasts and/or attending large in-person gaming conventions, Sivachelvam said. In addition, the cohort spends an extra hour on video games and an hour less on social media compared to other game enthusiasts, she said. Already, brands are advertising and recruiting new customers through gaming platforms, she noted. Sivachelvam expects companies that cater to Gen Alpha gamers could be winners in the medium term. These are some of the names UBS sees as exposed to the Gen Alpha gamification theme. Gaming company Electronic Arts has games that are based on wholly-owned intellectual property, such as Battlefield, or licensed intellectual property, like Madden NFL, Sivachelvam said. “Game engagement skews to younger demographics, suggesting companies such as EA stand to benefit as these cohorts age and spending power increases,” she said. Take-Two Interactive , another gaming company, also skews to younger demographics, she said. Shares of Electronic Arts are down nearly 12% year to date, while Take-Two Interactive’s stock is up more than 13%. In January, Electronic Arts cut its full-year guidance , which sent the stock tumbling. Earlier this month, Take-Two Interactive posted net bookings for its fiscal third quarter that came in below expectations, but the stock rallied after the company gave updates about the timing of new game releases, including Grand Theft Auto VI. Meanwhile, Hasbro is a leading toy and game company. It has built successful franchises and has digitized analog games, Sivachelvam noted. Hasbro is set to report fourth-quarter earnings on Thursday. Wellness The Covid pandemic accelerated awareness of holistic health for Gen Alpha, Sivachelvam said. “Our research shows that Gen Alpha is concerned about its mental and physical wellbeing, with parents of Gen Alpha materially more concerned about their children’s diet than parents of Gen Z,” she wrote. “This is both an opportunity (larger [total addressable market], e.g. Ulta Beauty) and concern (inappropriate use of products.” In fact, the cohort is engaging in beauty products four to five years ahead of their Gen Z counterparts thanks to social media, she added. The personal care and beauty sector is the largest within the wellness industry, she said. The Global Wellness Institute estimates the sector will grow at a 4.8% compound annual growth rate from 2023 to 2028. In addition, the generation is also focused on healthy eating. Here are some of the names UBS said are expose 与Alpha世代健康主题相关。Sivachelvam指出，Deckers Outdoor旗下的Hoka品牌实现了超常增长，她预计需求将持续强劲。Deckers在1月公布的第三财季业绩中，盈利和收入均超出预期，但全年收入指引未达市场共识。同时，On Holding被Sivachelvam视为增长最快的运动鞋品牌之一。她认为：“运动服饰仅占整个服装和鞋类行业销售额的25%，因此我们相信该行业能保持强劲增长。”最后，Sivachelvam强调，Ulta Beauty作为美国最大的美容零售商，在48个州拥有超过1000家门店。“Ulta正吸引年轻消费者，结合其传统美容爱好者群体（18岁以上女性），到2024年，其潜在可触达客户群预计将覆盖13岁以上所有性别的约1.4亿人，相比2021年仅18岁以上女性的7000万大幅增加。”
可持续生活方面，Sivachelvam表示，这一主题可能需要时间才能转化为可投资的主题。“虽然我们认为这一代对环境更为敏感，长远来看可能促成比前几代更环保的行为，但目前他们的消费模式尚未明显体现这一点。”她写道。最终，Alpha世代可能会改变或影响关于食物浪费、素食主义和快时尚的行为，Sivachelvam补充道。
原文链接：https://www.cnbc.com/2025/02/17/gen-alphas-interests-drive-more-than-5-trillion-in-spending-heres-who-benefits.html