Why SoundHound AI Stock Fell Hard Last Month
Shares of SoundHound AI (NASDAQ: SOUN) fell 20.6% in March 2024, according to data from S&P Global Market Intelligence. A disappointing fourth-quarter earnings report played a significant role, but the stock was also primed for extreme volatility after skyrocketing gains in February.
The provider of voice control systems driven by advanced artificial intelligence (AI) tools raised eyebrows in February, as AI giant Nvidia (NASDAQ: NVDA) disclosed a small investment in SoundHound AI's stock. The stock more than quadrupled due to a modest $3.7 million investment, as market watchers jumped to the conclusion that Nvidia must have bigger plans in mind.
But Nvidia's and SoundHound AI's earnings reports came along, and neither company's management mentioned this investment in their earnings calls. Moreover, SoundHound AI fell short of Wall Street's consensus targets across the board. Revenue rose 80% year over year, but the average analyst was looking for an 87% jump. This report was published after the closing bell on Leap Day.
Source Fool.com
