Stock market speculators cling to the latest fad. In the last few weeks, ChatGPT, or OpenAI, is the latest buzz. Microsoft’s (MSFT) implementation of OpenAI in Bing search is a game-changer. Alphabet (GOOG) (GOOGL) stock reacted negatively to Bing’s developments. However, companies that announced ChatGPT’s integration saw their stock rise.
This rally may prove short-lived. Investors should be wary of a potential stock pump that does not last.
c3.ai, whose stock traded at around $10, rose to above $25 recently. On Jan. 31, 2023, c3 announced a new artificial intelligence-focused product suite. It integrates Open AI’s ChatGPT. It also integrates AI capabilities from Google and academia. Market’s honed in on the c3.ai/ChatGPT news. The company, which posted an 11-cent-a-share non-GAAP loss in its second quarter, needs to post better results.
For 2023, c3.ai expects revenue of up to $270 million. It will lose between $85 million to $98 million from operations this fiscal year.
BuzzFeed (BZFD) traded as high as $4.00 before losing half its value by the end of last week. It will use OpenAI to boost more content. This approach may not increase user activity.
BuzzFeed cut 12% of its workforce. In Q4, it expects revenue of $129 million - $134 million.
