• Piper Sandler (PIPR)'s latest survey of nearly 9,000 U.S. teens shows TikTok and Instagram (META) dominating social media, while Snapchat (SNAP) loses ground and Netflix (NFLX) slips in streaming.
  • Beauty spending rebounds, with Ulta and Estée Lauder (EL) as top picks, and e.l.f. Cosmetics leading the category; Rhode surges.
  • Gaming and beverage trends favor Roblox (RBLX) and energy drinks, with 56% of teens planning to buy GTA 6 and 50% preferring energy drinks for caffeine.

Shifting Teen Preferences

The latest Piper Sandler "Taking Stock With Teens" survey, a semiannual gauge of adolescent consumer behavior, reveals a clear rotation in spending and attention. TikTok now commands 48% of teen social media preference, up from 46% in the prior survey, while Instagram holds steady at 31%. Snapchat, once a teen staple, dropped to 14%, a decline that could pressure its advertising revenue. In streaming, Netflix and YouTube (GOOGL) are tied at 28% of daily video consumption, a notable shift from Netflix's previous 30% lead, signaling intensifying competition for viewer attention.

Beauty spending, which had softened earlier, has rebounded. Ulta Beauty (ULTA) and Estée Lauder emerged as analyst top picks, backed by recent financial performance. Ulta reported an 8.9% revenue increase to $3.04 billion in its latest quarter, with comparable sales up 3.8%, while Estée Lauder's annual sales rose 5% to $15.05 billion and operating income recovered to $780 million from a prior loss. e.l.f. Beauty (ELF), owner of the surging Rhode brand, continues to gain share; Rhode contributed $113 million to quarterly growth and is on track for approximately $390 million in annualized net (NET) sales.

Gaming and Beverages

Roblox usage climbed to 49% among teens, yet its recent bookings growth of 8% lags revenue growth of 36%, a disconnect that cautions against equating engagement with immediate monetization. Meanwhile, 56% of teens intend to purchase the upcoming Grand Theft Auto 6, though purchase intentions do not guarantee actual sales. In beverages, energy drinks are now the preferred caffeine source for 50% of teens, up from 39% two years ago, a trend that benefits brands like Red Bull, Monster (MNST), and Alani Nu (CELH).

These shifts carry stock implications. Piper Sandler's survey lists positive calls on ULTA, EL, RBLX, META, GOOGL, UBER (UBER), DASH (DASH), TWLO (TWLO), NET, AKAM (AKAM), and FSLY (FSLY), while flagging SNAP, NFLX, and DELL (DELL) as negative. Analysts stress that survey data reflects preferences, not forecasts. For instance, Netflix's lower share of teen viewing time does not necessarily translate to weaker subscriber growth or profitability, as pricing and content strategies also drive results.

Caveats and Context

The survey, conducted since 2001, provides a snapshot of teen behavior but has limitations. Piper Sandler's public page still displays Fall 2025 results (covering 10,969 teens), not the nearly 9,000 teens cited in the latest headline. Some figures, like Roblox usage and GTA 6 purchase intent, remain unverified against the official report. Additionally, regulatory developments—such as the FTC's updated COPPA rule and a recent Alabama settlement requiring TikTok to implement age verification and usage limits—could alter platform dynamics.

Ulta's raised fiscal 2026 guidance and Estée Lauder's restructuring under CEO Stéphane de La Faverie, which includes 10,000 net position reductions and $1.2 billion in annual gross benefits, underscore that company-specific execution matters more than survey sentiment alone. Investors should watch Roblox's upcoming October 29 earnings for further clarity on whether teen engagement translates into bookings growth.

Correction: An earlier version misstated the prior Netflix share of daily video consumption; it was 30%, not 28%.