Millennial tested and Cramer approved: CNBC launches new Next Generation 50 index

CNBC is launching a new index on Monday—CNBC's Next Generation 50—to track stocks younger consumers are most interested in. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi  CNBC is launching a new index focusing on younger people, younger workers and younger investors. It is called the CNBC Next Generation 50 index. The index will track 50 equal-weighted stocks integral to lives and careers of millennials and those from Generation Z. We tried to create a list of stocks that were diverse in size and growth prospects and tried to avoid many (but not all) companies that have already become major household names. CNBC compiled the index after weeks of research from the networks’ younger reporters and producers working on both the television and digital sides of the business and with a final vetting from CNBC’s stock expert, Jim Cramer, a former successful hedge fund manager. As a reference point, after compiling the basket of stocks, CNBC’s Data and Research team backdated the index to the start of 2021. Since then it is up more than 40%. However, it has also been a victim of the recent uncertainty and volatility and has dropped 17% in the last month. Big holdings in crypto and fintech Forty-eight of the issues in the index are stocks and two are crypto assets. Because of the immense popularity and possible future utility of bitcoin and Ethereum, both are directly in the CNBC Next Generation 50. Coinbase is also listed as are Affirm, PayPal, Lemonade, Upstart Holdings and Square, which are different kinds of fintech stocks. The index also covers stocks that enable the modern day workforce to work more efficiently and securely. That includes DocuSign, Wix, Zoom, Palo Alto Networks and Crowdstrike. A few mega cap stocks like Amazon, Alphabet and Apple are on the list. In his note to members of the CNBC Investment Club newsletter last week Jim Cramer and his team made the case for Apple, which was up amidst last week’s carnage by more than 3% and has withstood the months’ volatility, rising 7% saying “companies with strong balance sheets, healthy dividend payments and consistent share repurchase programs and typically ones that can withstand and find support in volatile markets.” Cramer went on to credit Apple’s recent $20 billion stock buyback saying the stock has been seen as a “safe-haven” by investors leading to its outperformance. Entertainment and the future of travel Entertainment names in the index include another mega cap stock Netflix, along with Roblox. Our travel and transportation stocks include Airbnb, Uber, Lyft, Fisker, Lucid and Tesla. In an interview last week on CNBC Pro Talks, Cathie Wood, who manages ARK Invest, said she believes despite Tesla’s big run the company is poised for growth. “Tesla’s in the pole position to become the autonomous taxi network, certainly in the US and perhaps elsewhere as well,” said Wood. On the health side, vaccine innovator Moderna and Teladoc made the list. In that same CNBC Pro Talks interview, Wood also made a case for Teladoc, which she owns and has defended despite the fact the stock is down 70% since it’s February high of $308 a share. Wood said, “We see a company in Teladoc that is going to be really directing, directing patients and doctors and hospitals and insurance companies in what is becoming a very complicated and exciting world.” From the cannabis sector we listed Tilray and Canopy Growth. Renewable energy is a big part of the future and our index includes Enphase, PlugPower and Cameco. Our food listings include Chipotle, newly listed Dutch Bros, which is an Oregon based coffee company, and DoorDash. Dating sites Bumble and Match both made the list, as did a company that caters to pets and their owners, Chewy. We had to make some tough decisions including leaving stocks like Salesforce, Nvidia and Robinhood off the list for now, knowing that all three have become integral to the way younger people work, play and invest. » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n...   Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-cred... #CNBC #CNBCTV