A recent report from BestBrokers highlights the accuracy of stock predictions made by TikTok finfluencers in 2023. The study found that over 64% of the stock forecasts in the 20 most-watched stock-picking videos on TikTok were accurate, including significant rallies in AI stocks like Nvidia and Qualcomm. These influencers recommended blue-chip stocks such as Alphabet, Nvidia, and Amazon, similar to traditional financial experts’ advice for lower-risk investments.

Despite this accuracy, experts expressed skepticism about the reliability of these finfluencers due to unregulated practices and potential conflicts of interest. The broader U.S. stock market’s performance during the study period may have also influenced the results. However, finfluencers are credited with helping spread financial literacy among younger investors, who often lack financial knowledge. A report from the Global Financial Literacy Excellence Center revealed that the average American scored just 48% on a financial literacy test, with only 16% scoring between 75% and 100% in 2024. Personal finance expert Suze Orman has also highlighted the issue, estimating that 95% of Americans struggle with financial literacy, making them more susceptible to misinformation.

The credibility of finfluencers has been questioned before, such as in the case of Indian social media personality Ravisutanjani Kumar, who was criticized for allegedly falsifying his educational credentials. Despite these concerns, finfluencers continue to influence investment decisions, particularly among younger investors who are increasingly turning to social media for financial advice.