BuzzFeed Stock in Free Fall as Pivot to AI Blows Up in Its Face
Investors are BuzzFed up. The post BuzzFeed Stock in Free Fall as Pivot to AI Blows Up in Its Face appeared first on Futurism .
BuzzFeed's stock has experienced a dramatic decline following its controversial pivot to artificial intelligence (AI). In March, the company acknowledged "substantial doubt" about its ability to continue operating, reporting a net loss of $57.3 million for 2025. This decision, under the leadership of former CEO Jonah Peretti, appeared to backfire, with the company's stock falling from $2.09 to $0.57 in a single morning, a 38 percent drop.
Despite a brief rally in May when TV personality Byron Allen's family affiliate company acquired a majority stake, the stock price continued to plummet. Peretti, who proclaimed AI as his "passion," announced plans to expand BuzzFeed into free-streaming video, audio, and user-generated content. However, the company's earnings per share of negative $0.22, 13 cents worse than analysts' expectations, fueled investor concerns.
BuzzFeed's attempts at AI content, such as forgettable quizzes and awkward AI-generated travel guides, have failed to generate positive results. The company's recent layoffs of 33 percent of its staff highlight the grim reality of its pivot to AI, which appears to be more akin to MySpace's downfall than a pathway to success.
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