Tech

Cramer questions whether social media could peak because it has become 'less controversial'

Key Points
  • Jim Cramer questios whether the slowdown in active users on social media is because the major platforms have become, in part, "less controversial."
  • Cramer is particularly perplexed by Twitter because he expected it to have momentum going into earnings season.
Cramer: Social media peaked because it's becoming less controversial
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Cramer: Social media peaked because it's becoming less controversial

It's possible the slowdown in active users on social media is because the major platforms have become, in part, "less controversial," CNBC's Jim Cramer said Thursday.

Earlier this week, CNBC discussed whether a shift in user behavior may indicate that social media has hit "peak social," meaning the networks have topped out on growth and there's no room to add new users.

Social media companies Facebook, Twitter and Snap all missed analyst projections for user growth for the latest quarter, Twitter and Snap in particular decreased quarter over quarter. 

"There's always a question about whether social media has peaked and if social media peaked because it has become less controversial," Cramer, whose charitable trust owns shares of Facebook, said on "Squawk on the Street." Social media "is just not as interesting."

"There's got to be a reason those numbers did not hit," Cramer said, referring to the social media companies' quarterly reports.

Cramer was particularly perplexed by Twitter because he expected it to have momentum going into earnings season due to major sporting events such as the 2018 FIFA World Cup.

"I think Twitter is trying to go sports and less trash talk," he said. "I've been searching and searching for what happened because of sporting events, you've got a lot of momentum. Twitter is very much part of the fabric."

Twitter blamed the decline on not moving to paid SMS carrier relationships in certain markets, making changes to improve the platform and some impact from a set of European Union regulations. Facebook cited the EU regulations as one reason for its user miss.

Cramer also said Instagram's numbers have been "strong" but Snap's were "just horrendous," questioning whether consumers are "even checking in" to the social media platform. Snap blamed the Snapchat redesign for its user decline. (Snap is changing the redesign.)

Snap did not immediately respond to CNBC's request for comment.

— CNBC's Sara Salinas and Michelle Castillo contributed to this report.

Disclosure: CNBC parent NBCUniversal is an investor in Snap.