TikTok Finfluencers Score Big with AI Stock Recommendations, But Can You Trust Their Advice?
TikTok influencers accurately predicted the rise in AI stocks in the first half of 2024. They were correct in over 64% of their stock picks, with about 36% of the recommendations resulting in losses. The most profitable pick would have been Nvidia, returning over 60% on a thousand-dollar investment. Experts warn not to take advice wholesale from influencers due to potential biases and lack of credentials and regulation. They may promote stocks for payment or engage in front-running by recommending shares they own to inflate prices before selling.
Transcript
00:00It's Benzinga and here's what's on the block.
00:03TikTok influencers accurately predicted the rise in AI stocks in the first half of 2024.
00:08They were correct in over 64% of their stock picks, with about 36% of the recommendations
00:13resulting in losses.
00:15The most profitable pick would have been NVIDIA, returning over 60%.
00:20Experts warn not to take advice wholesale from finfluencers due to potential biases
00:24and lack of credentials and regulation.
00:26They may promote stocks for payment or engage in front-running by recommending shares they
00:31own to inflate prices before selling.
00:32For all things money, visit Benzinga.com.