Why BuzzFeed Stock Popped This Week
Shares of BuzzFeed (NASDAQ: BZFD) popped as much as 18.8% this week, according to data from S&P Global Market Intelligence. The digital media company and heavily shorted penny stock has experienced huge volatility to start 2023 after announcing new artificial intelligence (AI) initiatives. As of this writing, shares are up 175% year to date but are still down 80% since going public in late 2021.
BuzzFeed, a media site started back in 2006 that became popular due to its personality quizzes, is about to start using artificial intelligence (AI) for editorial and business operations. This is according to The Wall Street Journal, which acquired an internal memo from BuzzFeed CEO Jonah Peretti outlining the company's new AI strategy.
Investors embraced this idea, shooting BuzzFeed shares up in the days following the report. The market has become enamored with AI since to start of the year, mainly due to the explosion in popularity of ChatGPT and Microsoft's new investment into its parent company, OpenAI. Microsoft's search engine, Bing, has just released its own AI chatbot to the public, powered by OpenAI's algorithms. There is a lot of hype around AI right now. Time will tell if it fulfills all the promises everyone seems to be making about it, though.
Source Fool.com
