Shares of SoundHound AI Inc (NASDAQ:SOUN) are falling again during Wednesday’s trading session, likely due to overall weakness in tech stocks this week.
What To Know: Wednesday’s price action follows a record-breaking second quarter reported in early August, which CEO Keyvan Mohajer hailed as the company's "all time strongest quarter."
SoundHound beat analyst expectations with revenues of $42.68 million, a notable 217% year-over-year increase that soared past the consensus estimate of $32.88 million.
The voice AI specialist also demonstrated a clear path toward profitability, posting a smaller-than-expected adjusted loss of only 3 cents per share, compared to the anticipated 9 cent loss.
Additonally, management raised its full-year 2025 revenue forecast to a range of $160 million to $178 million, signaling strong confidence in its growth trajectory. This impressive performance garnered bullish responses from Wall Street, with firms like Ladenburg Thalmann and Wedbush upgrading their ratings and raising their price targets to $16.
After a 7% run-up over the last month, the stock is retreating Wednesday as investors potentially take profits amid wider market weakness.
Price Action: According to data from Benzinga Pro, SOUN shares are trading lower by 6.43% to $12.44 Wednesday morning. The stock has a 52-week high of $24.98 and a 52-week low of $4.32.
Read Also: Wall Street Braces For Tech Carnage: ‘Disaster’ QQQ Options Tell The Story
How To Buy SOUN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in SoundHound AI’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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