You may not have heard of Generation C -- for covid. It encompasses those born after 2016 and accounts for 9% of the global population, Bank of America says. It obviously will have a significant impact on society.
“Potentially the most disruptive demographic shift is that of the next generational cohort,” Bank of America strategists wrote in a commentary.
“Born into an online, decarbonizing world, Gen C is the first generation that won't remember the outbreak of the coronavirus. But it will have a significant impact on the world in which they live.”
A mental element is at play here, the Bank of America strategists said. “Initial studies show a cognitive deficit relative to prepandemic children.”
As for the social environment, “today, we are still learning to live in a technological world and trying to deal with the issues it presents, including privacy concerns, health-care implications, security and data misuse,” the strategists said.
“This should pave the way for Gen C to live in harmony with technology amid ubiquitous connectivity.”
So what will be the lifestyle of the people in Gen C?
“A cashless, shopless, driverless, potentially collegeless generation, as they change attitudes to money, work, mobility and education in the advent of new disruptive technologies,” the strategists said.
“Also, Gen C could be the first generation to cheat death and achieve immortality and live in a net zero world.”
The “cheating death” part presumably would result from medical advances. And “net zero” refers to carbon emissions.
Bank of America strategists named five stocks that can benefit from all these changes:
· Roblox (RBLX), the online videogame platform;
· Coinbase (COIN), the country’s largest cryptocurrency exchange;
· Block (formerly Square) (SQ), a diversified financial services company;
· Trupanion (TRUP), a health-insurance company for pets; and
· Disney (DIS), the media/entertainment giant.
BofA’s Take on the Stocks:
Roblox: A total of “23% of Roblox users are younger than age 9, while 26% are age 9-12. The U.S. 9-12 cohort is the most lucrative,” the strategists said.
“As Gen C grows into its teenage years, they could view Roblox as a multipurpose platform, similar to how social networks were viewed before they grew beyond their core university student demographic.”
Coinbase: “Buyers and sellers of crypto and other digital assets tend to skew toward a younger generation, who is typically more tech-savvy and more willing to try new technologies than older cohorts,” they said.
Block: Its Cash App tends to draw younger, tech-savvy users just like Coinbase, the strategists said. “Cash App appeals especially to consumers who are becoming disillusioned with the traditional financial system and banks.”
Trupanion: It’s “the industry leader within North America, representing an 18% market share,” the strategists said. “The global pet-care market is expected to grow at a 7.4% compound annualized rate throughout 2022-2027.”
Disney: “In recent years, consumer preferences have shifted from linear viewing to streaming, which is leading to disruption in traditional media,” the strategists said. And Disney is a major player there.
“We also see potential for Disney to be a key stakeholder in the metaverse,” they said.
