Shares of social media short-form video app (NYSE: SNAP) are falling on Tuesday, having declined 9.2% at 3:08 p.m. ET.
Snap fell along with most other consumer discretionary stocks today, after September consumer sentiment readings came in lower than expected. Not only that, but artificial intelligence (AI) darling OpenAI unveiled a social media short-form video app, which could be a threat to all short-form social media companies, Snap included.
Last night, Wired magazine learned that OpenAI was looking to launch a stand-alone social video app based on its Sora 2 image and video generator model. Apparently, the app will have a vertical video feed and swipe-to-scroll navigation, closely resembling TikTok, but for AI-generated content.
Source Fool.com