This year’s tax filing season begins on January 24. Some new, younger investors may be in for a surprise.
Last year’s trading frenzy over “meme stocks,” such as AMC Entertainment and GameStop, could now have an unexpected impact on 2021 tax returns.
“Last year was a really interesting year in terms of investors, especially younger investors,” said Apex Fintech Solutions CEO Bill Capuzzi, “what they bought, when they sold, why they bought, why they sold.”
Apex, the digital clearing platform for many investing apps, including SoFi and Stash, analyzes about one million trading accounts of investors ages 24 and younger each quarter.
For example, AMC was unranked before joining the list in sixth place on Apex’s list of top 100 stock holdings for Gen Z investors in the first quarter last year. With the stock price’s sharp rise and fall last January, AMC became one of the “meme stocks” of the moment. In the third quarter, AMC was the number one holding among younger investors. Yet as its share price tumbled from its year to date high, and the meme stock mania subsided, AMC finished the year in third place behind Tesla and Apple.
Main image credit: Financial Times