Why SoundHound AI Stock Is Plummeting Today
SoundHound AI (NASDAQ: SOUN) stock lost ground Wednesday morning -- trading 8% lower as of 10:30 a.m. ET, according to data from S&P Global Market Intelligence. The audio-technologies specialist's shares had been down by as much as 14% earlier in the session.
Before the market opened Wednesday, a Northland analyst published a note that took a more cautious position on the stock. Northland's Michael Latimore lowered the firm's rating on the stock from outperform to market perform, and investors are pumping the brakes on an incredible run. Even on the heels of Wednesday's pullback, the SoundHound's stock remains up by roughly 240% over the last month.
While Northland's analyst highlighted SoundHound's strengths and opportunities this year, the stock's steep valuation surge caused the firm to take a more cautious stance toward its share price. The audio tech stock has surged in conjunction with emerging artificial intelligence (AI) opportunities, the recent disclosure that Nvidia (NASDAQ: NVDA) owns a stake in the company, and other positive catalysts. In his note, Latimore said that investors should keep an eye on the rollout and adoption of the company's technologies at restaurants and drive-thrus this year.
Source Fool.com
