SOUN - Why Is SoundHound AI Stock Dropping?
2024-04-20 03:27:00 ET
It's been an extremely volatile year for artificial intelligence (AI) specialist SoundHound AI (NASDAQ: SOUN) . In mid-February, investors learned that chipmaker Nvidia owned a stake in the company. While the investment was modest, at 1.73 million shares currently worth $6.6 million, the stock surged, pushing its year-to-date gains to 320% by March 15.
Since then, however, SoundHound AI dropped nearly 57% from its high, as a trio of issues has weighed on the stock.
At its peak, SoundHound AI stock was selling for roughly 45 times sales, a frothy valuation under most circumstances. While the company has generated impressive revenue growth -- sales jumped 47% in 2023 -- SoundHound AI has yet to generate a profit. The company is making progress in that regard, cutting its loss nearly in half.
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Why Is SoundHound AI Stock Dropping?