I lost thousands on an influencer's hot tip. This is the hard lesson up to 1 in 5 Kiwi investors could learn

Saturday, 16 May 2026

New Zealand men act on investing advice from social media influencers, compared to 16% of women.

Research found that advice from friends and colleagues is cited as an important source of information for 85% of investors under the age of 35, and 61% of these investors also said they were using social media as a source for investment information.

Financial influencers often have hidden motives and may be paid to promote specific investment recommendations without clear disclosure.

Investment advice on social media is often unregulated and may come from non-experts without proper qualifications to offer financial guidance.

ANALYSIS: In 2021, NYU Stern Professor Scott Galloway made a bold prediction that Airbnb would hit US$200 a share and that the company would expand into short-term office space to capitalise on the remote-work trend.

He famously labelled the company AirbnBaller, saying it would become the most valuable hospitality firm in the world.

I was among the retail investors who regularly read and listen to Galloway’s often insightful analysis on markets and made a small investment in Airbnb. In the years that followed, I incrementally increased that stake to ensure I would have a decent holding once the company took off.

But that never happened.

From its 2020 listing to today, the share price has largely flatlined, currently sitting at US$133 and showing little sign of becoming the baller it was meant to be. Galloway doesn’t speak about the company in those terms any longer.

I sold my Airbnb stake earlier this year to return to the safety of index funds. On paper, I broke even. In reality, I lost. Five years of inflation eroded my principal, while the S&P 500 would have more than doubled my money in the same period. The difference would have been worth thousands of dollars.

In his defence, Galloway has always been open about his investing mistakes and reminds his viewers often that there are no certainties. It was entirely my choice to make the investment, and I’m happy to own the error.

Hindsight, as they say, is always 20-20.

But somewhat worryingly, the connection between social media influencers and Kiwi retail investors isn’t going anywhere any time soon.

Fresh data from Craigs Investment Partners suggests that one in five Kiwi men is likely to act on investing advice they see from influencers on social media. Women fare slightly better, with only 16% listening to social media influencers – but this is hardly good news.

The fin-fluencer’s hustle

So-called financial influencers are in the business of attracting attention. The fin-fluencer hustle thrives on the oversimplification of the complex. While the worst offenders lurk in the crypto space, the behaviour is systemic, with outrageous claims and controversial tactics used to cut through the digital noise. For Kiwi investors, the danger is twofold: the advice is often unregulated, and the motives are often hidden.

Professor Claire Matthews says there’s good advice on social media, but you need to exercise caution.

Regulators in the UK, the United States, Hong Kong and Australia have all taken action in response to social media ads targeting audiences in their countries.

Professor Claire Matthews, the head of the School of Accountancy, Economics and Finance at Massey University, says it’s definitely a concern that as much as 20% of Kiwis are getting investment recommendations from social media.

“Often, the social media will not be from New Zealand, and expectations and rules differ in other countries, so advice that is really good in the US, for example, may simply not apply in New Zealand,” she says.

Some of it, she adds, may be useless in any country.

Much of the information being presented will be from non-experts, who simply don’t have the qualifications to offer decent advice. This space is carefully regulated in New Zealand, explains Matthews, because we need to ensure that Kiwis are getting advice that actually benefits them.

The other thing Kiwis need to watch for is an ulterior motive.

“It may not always be clear to what extent their recommendations are made simply because they are paid to do it,” says Matthews.

“It’s fine to get information from social media, but it is important that you then verify its value and applicability before you act on it.”

Matthews says there are certainly good examples of social media influencers dedicated to improving financial and investment literacy, but these often sit shoulder to shoulder with others who aren’t quite as well-intentioned.

The confidence gap

The social media factor isn’t the only important difference between genders.

Gretchen Williamson notes there are signficant differences between how men and women invest.

Gretchen Williamson, Investment Advisor at Craigs Investment Partners, tells me there’s a distinct confidence gap between Kiwi men and women.

While 56% of Kiwi men feel confident making investment decisions, that bravado often leads to riskier punts on hot social media tips. Women, conversely, are more considered and prioritise balance – yet their lower confidence (32%) often keeps them on the sidelines, missing out on the consistency needed for long-term growth.

That innate confidence means men are also far more likely than women to invest monthly (32% to 19%), which again contributes to portfolio growth over time.

The research also found that women are more likely to prioritise a balanced approach to investing, while men are significantly more likely to prioritise growth (33% compared to 20% of women).

“We often see women who are highly capable and engaged, but who haven’t always had the

same level of confidence in making investment decisions,” says Williamson.

“That can influence how frequently they invest and the level of risk they’re comfortable taking,” says Williamson.

Williamson notes that there are pros and cons to these differences. While women do tend to be more considered in their decision-making and more selective in terms of who they trust, she says this could have the impact of stopping them from getting started in the first place or investing consistently.

On the flip side, the confidence of men can lead them to make riskier punts (often on social media recommendations) than they perhaps should.

'We don't want people to be going out there and putting all their money into one hot thing and not realising the implications,” says Williamson.

“It happens all the time… That can be great again when it's going up, but not so great when it's going down.'

Williamson says that every person has a slightly different tolerance for risk and that this is something we learn over time.

The goal shouldn’t be to avoid every mistake, but to ensure that any 'gambles' or errors are small enough that they don't wipe out your entire retirement fund.

Which is to say: a hopeful punt on Airbnb isn’t necessarily a bad thing as long as it doesn’t evict the lunch you’re hoping to have in the future.