Reddit (NYSE:RDDT) shares slid 12% to close at $202.60 on Wednesday, following a 5% decline a day earlier, after data from AI search engine tracker Promptwatch showed that use of Reddit’s content in AI chatbot ChatGPT had declined sharply in September.
Promptwatch reported that Reddit content was cited in just 2% of ChatGPT responses on September 30, down from 9.7% during the previous month, and well off its September peak of 14%.
Reddit was still the top social platform cited by ChatGPT, with its content appearing in 4.3% of ChatGPT's responses on average in September.
By comparison, LinkedIn, the second-most-cited social platform, was referenced in just 0.4% of ChatGPT's answers during the month.
In early August, Reddit reported second quarter revenue that surged 78% year-over-year to $500 million, ahead of the analyst consensus estimate of $426.5 million.
The company also swung to a profit of $89 million in the quarter, compared with a loss of $10 million during the same period last year.