SoundHound AI Stock Sinks 21% on Earnings Miss and Profitability Target Pushback, Halting Nvidia-Fueled Rally
Shares of SoundHound AI (NASDAQ: SOUN) dropped 21.4% in Thursday's after-hours trading, following the artificial intelligence (AI)-powered voice solutions provider's release of its fourth-quarter 2023 report.
The stock's decline is attributable to the quarter's revenue and earnings missing Wall Street's consensus estimates, along with the company pushing back the date at which it expects to achieve a positive result for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). Last quarter, management reaffirmed that it anticipated reaching this target in Q4 2023. That didn't happen -- this metric was negative $3.7 million in the quarter. Now it expects to achieve this goal in 2025.
It remains to be seen if the stock's sell-off is just a brief blip in its recent massive rally. SoundHound AI shares have surged following AI chip leader Nvidia's disclosure, via a Feb. 14 Securities & Exchange Commission (SEC) filing, that it owns a small stake in SoundHound. Specifically, Nvidia owns about 1.73 million shares, which gives it an ownership stake of less than 1%.
Source Fool.com
