Shares of Buzzfeed (NASDAQ:BZFD) stock have been cleared for takeoff. Earlier this week, the media and entertainment company announced that it would begin using OpenAI’s publicly available application programming interface (API) to assist with creating content, such as interactive quizzes.
CEO Jonah Peretti said the following about the news:
“In 2023, you’ll see AI inspired content move from an R&D stage to part of our core business, enhancing the quiz experience, informing our brainstorming, and personalizing our content for our audience.”
This announcement follows a round of layoffs last month. In December, Buzzfeed laid off 12% of its staff, or about 180 employees. The company attributed the layoffs to reducing costs and preparing for a possible economic downturn. The move also followed a previous round of layoffs in March, when Buzzfeed laid off about 1.7% of its staff.
In addition to the OpenAI news, Buzzfeed inked a deal with Meta Platforms (NASDAQ:META) last year worth close to $10 million. The deal will see Buzzfeed create content for Facebook and Instagram and help online creators bolster their social media presence.
This news has resulted in a sharp incline for BZFD stock. Shares are up by more than 250% over the past five days.
5 Investors Betting Big on BZFD Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, 41 13F filers disclosed ownership of BZFD stock, a decline of one filer from the previous quarter. In addition, six institutional investors disclosed a new position in shares, while six others closed their positions. Meanwhile, the institutional put/call ratio sits at a low 0.03, down from 0.32. That’s equivalent to 8,100 puts and 259,100 calls, implying a significantly bullish options stance. With that in mind, let’s take a look at the top shareholders of Buzzfeed.
Please note that this list only includes investors who have filed at least a Q3 position update. For example, Comcast (NASDAQ:CMCSA) reportedly owns 30.88 million shares, but that figure is only accurate as of Q4 2021.
- Patrick Kerins, Director and 10% owner: 15.44 million shares. Kerins’ stake is accurate as of Dec. 3.
- Nea Management Company: 15.33 million shares. Nea’s position remained unchanged during Q3.
- Verizon (NYSE:VZ): 11.47 million shares. Verizon disclosed its entire stake during Q4.
- General Atlantic: 7.86 million shares. General Atlantic’s position remained unchanged during Q3.
- Adam Rothstein, Director: 7.19 million shares. Rothstein’s stake is accurate as of Dec. 3.
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On the date of publication, Eddie Pan held a long position in META. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.