Finfluencers and the Consumification of Stock Investment
Publikation: Vorabdruck/Dokumentation/Bericht › Arbeitspapier
Beitragende
Abstract
Financial influencers (finfluencers) increasingly disseminate investment advice through short-form videos embedded in consumer and lifestyle content. We study whether their stock recommendations adopt to consumption context or merely replicate analyst advice. We develop a consumption-hedging view of finfluencer recommendations, arguing that retail investors may value shares of firms whose products they consume because equity ownership can hedge exposure to future increases in the prices of those products. Using a handcollected sample of 544 explicit and reasoned TikTok stock recommendations from 98 finfluencers between 2023 and 2025, we test the predictions of the consumption-hedging view using a triple-difference design that exploits exogenous variation in consumption. We find that periods of higher consumption increase recommendations of consumer-goods firms by a factor of 2.02, generate greater engagement with finfluencers, and do not lead to inferior longhorizon performance relative to analyst recommendations. Our findings show that finfluencer investment advice provides value beyond information about expected returns by incorporating consumption objectives of retail investors.
Details
| Originalsprache | Englisch |
|---|---|
| Publikationsstatus | Veröffentlicht - 14 Aug. 2026 |
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