From Nasdaq: 2024-04-04 17:24:23

Shares of SoundHound AI (NASDAQ: SOUN) dropped 20.6% in March, with disappointing earnings and February’s meteoric rise contributing to the volatility. Nvidia’s small investment in SoundHound AI initially sparked excitement, but earnings reports fell short, causing a sharp single-day price drop in March.

Despite initial enthusiasm, there was no mention of Nvidia’s investment in SoundHound AI’s earnings reports. The company missed Wall Street’s targets, with revenue growing 80% instead of the expected 87%. This led to a 19% price drop to start March, followed by a 45% surge and subsequent decline, mainly influenced by analyst reviews.

With SoundHound AI’s stock showing extreme volatility, potential investors should consider the company’s long-term growth prospects and its reliance on a $661 million backlog for future revenue. The small-cap AI firm may face challenges as it transitions into profitability, leading to roller-coaster stock movements in the coming years.



Read more at Nasdaq: Why SoundHound AI Stock Fell Hard Last Month