What Happened?
Shares of voice AI technology company SoundHound AI (NASDAQ:SOUN) fell 0.9% in the morning session after the stock extended its year-to-date losses amid signs of growing investor skepticism. The move contributed to a difficult year for the voice AI company, with reports highlighting that shares had already dropped around 36% since the start of the year. This performance trailed its industry peers and the broader market. The decline occurred as the company, once popular with retail traders, faced increasing doubt from investors. SoundHound's drop was more significant than the slight dip seen in the wider tech sector during the session.
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What Is The Market Telling Us
SoundHound AI’s shares are extremely volatile and have had 86 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 15 days ago when the stock gained 4.8% on the news that renewed enthusiasm for Alphabet reinvigorated the artificial intelligence trade, propelling a market rebound heading into the Thanksgiving holiday. The Nasdaq index jumped 2.6% and the S&P 500 gained 1.6%, driven by a 5% rally in Alphabet following the announcement of its upgraded Gemini 3 AI model. This optimism spilled over into the broader tech sector, lifting shares of Broadcom, Micron, and Palantir significantly. The rally built on momentum from the previous trading session, sparked by the New York Fed president keeping the door open for a December interest rate cut.
SoundHound AI is down 37.3% since the beginning of the year, and at $12.64 per share, it is trading 47.8% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $1,685.
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