Down 29.4% in the first two-and-a-half weeks of the New Year, SoundHound AI (Nasdaq: SOUN) stock is off to a rocky start in 2025. One thing you cannot say about SoundHound stock though, is that it’s been boring ride.
In early trading Friday, shares of the software stock, which uses artificial intelligence to process orders given by voice, rocketed 9.9% before giving back all its gains and dipping into the red. As of 12:11 p.m.ET, SoundHound stock is actually down 0.5%.
Key Points
-
SoundHound stock spiked 9.9% in early trading on the Nasdaq today.
-
The rally immediately lost steam, and SoundHound stock is now in the red.
-
There as no news to explain the spike, nor anything to explain why it went away.
-
If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Trending Video
What sparked SoundHound’s dramatic rise in share price today, and what explains the fact that it quickly evaporated? The answer is actually the same to both questions: Nothing.
No press releases from SoundHound. No major news headlines breaking over the Interwebs. No upgrades nor downgrades on Wall Street. It’s crickets out there, folks, no matter that the sine wave of SoundHound’s price chart suggests otherwise.
So what
In contrast to today’s lack of obvious news, SoundHound did have substantive news to report earlier this year. In fact, the day after New Year’s Day, Jan. 2, SoundHound announced a partnership with Lucid Group (Nasdaq: LCID) to put a new SoundHound-powered “revolutionary new hands-free voice assistant,” Lucid Assistant, in the electric car company’s EVs.
Then last week, SoundHound demoed its “first ever in-vehicle voice commerce platform … at CES 2025,” which “allows drivers and passengers to order takeout for pick-up directly from the car’s infotainment system.”
But doesn’t that sound just a wee bit familiar?
Yes. It does. Like “The Office” meme says, “it’s the same picture.”
Now what
Don’t get me wrong. Voice-controlled AI is cool and all, but the fact that SoundHound seems to have run the same PR as if it was two different stories, on two different weeks, kind of highlights the suspicion that SoundHound might be a one-trick pony.
For a supposed growth stock valued at $5.2 billion, but with no profits at all and only $67 million in revenue, that’s not a good look. No wonder investors are just trading into and out of SoundHound stock today, and declining to buy and hold.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.