Why Reddit Stock Tumbled This Week
A recent study conducted by AI company Promptwatch suggests that Reddit (NYSE: RDDT) is being used less often as a source for ChatGPT queries. This revelation led to a steep decline in Reddit's stock price on Wednesday. By late Thursday morning, Reddit stock was down about 14.9% for the week, according to data provided by S&P Global Market Intelligence.
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Data from Promptwatch shows a steep and sudden decline in the percentage of ChatGPT responses that cite Reddit as a source. Prior to Sept. 11, Reddit was cited in more than 14% of responses where web search had been triggered, dwarfing other social networks. That percentage then dropped below 1%, recovering to roughly 2% as of Oct. 1.
Source Fool.com
