Part giveaway and part social media event, Stash has been running virtual "Stock Parties" during the COVID-19 stay at home orders.
The open parties offer the chance for people to earn stock in their Stash investment accounts by joining others at 4pm EST each weekday. These parties were created to bring to life Stash's approach to building healthy money habits in repeated, small steps. Stash recently reached $1 billion in AUM in $28 increments.
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Over 64,000 people have participated in Stock Parties since it launched in January 2020. On average, over 7,000 people join each party, with the biggest parties attracting over 18,000 participants. Stash has given out close to $100,000 in “party stock”.
Some moms like flowers. $FLWS #StashStockParty
— Stash (@Stash) May 12, 2020
May Fest. Day 8 💐➡️https://t.co/96ocgRtnHN pic.twitter.com/qxOJuVbMre
The challenger bank uses Twitter (#StashStockParty) and community to get the word out about its Stock Parties. The parties are similar to Stash’s Stock-Back rewards program, which rewards Stash customers with cashback in the form of fractional shares on their everyday spending. More than $10 million in Stock-Back rewards have been given out to-date, up from $5 million in November 2019.
There appears to be a halo effect around earning or gifting fractional shares of stock. 65 percent of people participating in Stock Parties hold or buy more of the earned investment as part of their portfolios. Similarly, 30 percent of Stash customers who received a reward in stock went on to make additional investments in that security, according to the company.
Stock Parties have become a way for thousands of investors to earn fractional shares of stocks in a wide variety of companies, and a way to come together during a period of isolation. The company claims the parties are growing in virality, participation and bonus stock amounts.
The Stock Party has simple rules. Each weekday, Stash uses Twitter to announce which stock will be given away that day, and then the party begins at 4pm EST. Participants can recruit friends ahead of the party to boost the “party power,” increasing the total dollar amount and each person’s potential stock reward.