U.S. Stock Movement | ChatGPT citation volume plummets, raising market concerns; Reddit falls over 9%
Reddit's stock price fell over 9%, continuing a 5% decline from the previous trading day, closing at $209.16. Investors are concerned about its position in the AI era, as the citation rate of Reddit content in ChatGPT sharply dropped to 2% in mid-September. Although Reddit remains the most cited social platform in ChatGPT, its citation rate has decreased from 14% in early September to 4.3%. To address the challenges posed by AI, Reddit has reached data licensing agreements with OpenAI and Google, and has launched its own AI search and advertising tools
According to Zhitong Finance APP, Reddit (RDDT.US) stock price has declined, continuing the previous trading day's 5% drop. As of the time of publication, the stock has fallen over 9%, trading at $209.16. The latest data shows that its content's citation volume in the artificial intelligence chatbot ChatGPT sharply declined in mid-September, raising concerns among investors about its position in the AI era.
According to data from AI search engine tracking platform Promptwatch, on Tuesday, ChatGPT cited Reddit's content in only 2% of its responses, significantly down from 9.7% last month. During the peak in early September, this figure exceeded 14%. Nevertheless, Reddit remains the most frequently cited social platform in ChatGPT, with an average citation share of 4.3% in September. In comparison, the second-ranked LinkedIn had a citation rate of only 0.4% in ChatGPT responses.
For a long time, Reddit has been viewed as a social version of a search engine, with users often adding "reddit" after their search keywords to find practical advice and usage guides. However, with the rise of AI chatbots, traditional search resources face potential "substitution threats."
To address these challenges, Reddit has reached data licensing agreements worth billions of dollars with OpenAI and Google (GOOG.US, GOOGL.US), allowing its content to be used for training AI models. Additionally, the company has launched its own AI search and advertising tools to further expand its commercialization path
