“I think social media has taken over for our generation. It’s a big part of our lives, and it’s kind of sad.” – Kendall Jenner
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There’s been a well-documented trend in recent months of younger people becoming fascinated with older, retro technologies. Witness pop stars like Taylor Swift and Bad Bunny increasingly releasing new albums not just on streaming and digital formats, but also CD and vinyl. (Swift, for reasons that escape us entirely, also opted to release her album on cassette tape.) Zoomers are also increasingly seeking out “dumb phones”, paper books, and purpose-built digital cameras (or even film cameras) in an effort to “detox” from their smartphones and screens, at least some of the time.
This disenchantment with “new” technology might be spreading to the usage of social media.
As reported by the Financial Times, “time spent on social media peaked in 2022 and has since gone into steady decline, according to an analysis of the online habits of 250,000 adults in more than 50 countries.” The data also suggests that of those still active on social media, the share of those who use it to be “social” – to stay in touch with friends or make new friends – has fallen as well. (The U.S. is bucking the trend for now, but given the aforementioned effort to detox from screens and smartphones, it’s unlikely to continue doing so.)
That has implications for several industries. Obviously, social media companies make money by selling ads, so if users start spending less time on social media, then ads on such platforms will start to be worth less to advertisers, and businesses will look for other ways to reach prospective customers. This might be positive for streamers’ and traditional media outlets’ ad revenues, however. Hey, someone’s got to fill the gap.
Furthermore, if human beings stop getting their social “fix” through social media, they’re going to need to fulfill their innate need for social interaction elsewhere – maybe old-school, in-person ways like meeting up in person (how retro!) – at concerts, movie theaters, malls, and restaurants/bars. Companies in those industries might be positioned to benefit, if so.
Perhaps less obviously, the financial sector could be impacted if social-media usage declines significantly – and not just due to the movements of stocks in the industries mentioned above.
We’re talking about meme stocks.
Consider that meme stocks are only possible because retail traders like to hype up shares of the most random companies and amplify their bets via the social media medium. So if social media use declines sufficiently, this could plausibly result in less-intense fervor for any meme stocks that emerge in the future.
It’s true that historically, even highly volatile moves in meme-stocks have not had a significant or lasting impact on the stock market in general – despite the headlines. However, those headlines have arguably driven greater interest in investing in general, leading to a boom in retail investing that we’re still seeing to this day. Many credit the initial wave of meme-stock mania for a surge in new brokerage accounts being opened and dramatic revenue increases for trading platforms like Robinhood and the firms to which Robinhood turned for trade execution. (Robinhood apparently views social media and meme stocks as important enough for its business model to warrant the creation of its own social media platform.)
As much as people might gripe about “those darn kids” staring at their social media feeds, it’s reasonable to ask what might happen if they stop and look up.
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📧✍️Here’s what a reader commented📧✍️
Q: Do you think the trend toward smaller homes is being driven by financial considerations, or shifting personal preferences?
A: The millennials seem to value experiences over possessions. With all of the current pressures on costs, I think the trend for smaller homes on smaller lots continues.
Catch up with FS Insight
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Crypto
We view recent crypto weakness as part of a broader risk-off driven by AI margin concerns, rather than crypto-specific factors or changes in Fed expectations. Bitcoin miners such as WULF, CIFR, IREN, HIVE, BITF, and GLXY outperformed, highlighting power-cost sensitivity in AI infrastructure and the leverage of energy-efficient compute providers.
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| Date | Time | Description | Estimate | Last |
|---|---|---|---|---|
| 10/10 | 10AM | Oct P UMich 1yr Inf Exp | 4.7 | 4.7 |
| 10/10 | 10AM | Oct P UMich Sentiment | 54.0 | 55.1 |
| 10/14 | 6AM | Sep Small Biz Optimisum | n/a | 100.8 |
| 10/15 | 8:30AM | Sep CPI m/m | 0.4 | 0.4 |
| 10/15 | 8:30AM | Sep Core CPI m/m | 0.3 | 0.3 |
| 10/15 | 8:30AM | Sep CPI y/y | 3.1 | 2.9 |
| 10/15 | 8:30AM | Sep Core CPI y/y | 3.1 | 3.1 |
