SOUN - Why SoundHound AI Stock Plunged 28% Last Month
2024-05-07 09:47:01 ET
Shares of SoundHound AI (NASDAQ: SOUN) plunged 28% during April, according to data provided by S&P Global Market Intelligence . The company plans to sell shares, which investors didn't like. And it's clear that excitement over artificial intelligence (AI) is starting to fade, at least a little bit.
According to a filing on April 10, SoundHound decided to sell $150 million of its stock through five different financial institutions which will act as sales managers. These will find buyers for shares at market prices and will receive 2.5% of the gross proceeds.
SoundHound's management says the first $55 million raised will go toward general company purposes, which may include acquiring other companies. The next priority is repaying debt. And if there's any money left over, it plans to invest the money in interest-bearing accounts.
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Why SoundHound AI Stock Plunged 28% Last Month