Five interesting things that Hodges Capital research analysts discovered this week...

#1 INTERNET DECAY: Internet traffic monitor SimilarWeb estimates that global search traffic declined by approximately 15% as of June 2025 compared to the previous year. As users shift from Google searches to AI queries, there has been a notable decrease in click-through rates to the original source sites. Many websites rely on traffic-driven revenue through digital ad sales, and this potential for permanently reduced traffic poses a significant threat to their business models.

#2 MODERN WARFARE: Defense Secretary Pete Hegseth issued a statement affirming the current administration’s intent to fast-track the integration of drones into the U.S. military. Hegseth urged high-ranking officials to cut through bureaucratic red tape, noting that drones have become a standard feature in modern global conflicts. Several U.S. companies have already begun developing combat-capable drone hardware and software systems.

#3 LONE STAR LOANS: A recent study by WalletHub found that Texans are the most financially distressed residents in the nation. The analysis considered several indicators, including average credit scores, the number of accounts in distress, and internet searches related to debt and loans. Floridians ranked second in terms of financial distress.

#4 CRYPTO MEETS THE HILL: As the first “Crypto Week” kicks off in the House of Representatives, lawmakers are expected to focus on the use of cryptocurrencies in real estate transactions. A key topic is whether crypto holdings can be considered in mortgage risk assessments, similar to stock and cash assets. If passed, such measures would mark a significant shift in a housing market that has remained risk-averse since the 2008 crash. Currently, there are approximately 34% more home sellers than buyers, and new crypto-related legislation may help to balance the scales. (Source: The Daily Upside)

#5 GAMING THE SYSTEM: According to Bloomberg, GameStop—the notorious meme stock and video game retailer—auctioned off a Nintendo Switch 2 console for $250,000. The console gained value due to its rarity and the fact that it was damaged at the time of sale at a Staten Island store. The damage occurred when a receipt was stapled to the outer box. The incident went viral, and GameStop auctioned both the console and the stapler responsible for the damage. All proceeds were donated to charity.

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