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SoundHound AI shares fall as disappointing results temper rally
SoundHound AI shares fall as disappointing results temper rally By Reuters
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Published Mar 01, 2024 08:38AM ET
Updated Mar 01, 2024 09:51AM ET
© Reuters. FILE PHOTO: SoundHound AI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Shares of SoundHound AI (NASDAQ:SOUN) Inc slumped 24% on Friday after the AI voice provider posted downbeat quarterly results, taking some shine off a bumper rally last month fueled by surging interest in artificial intelligence.
The company’s shares, last at $5.7, were poised for their steepest one-day fall in 14 months.
The declines also pulled down AI-related stocks including Guardforce AI, Bullfrog AI Holdings and BigBear.ai Holdings between 1% and 8%.
The stock surged 350% in February, marking its best-ever monthly gain, after AI poster child Nvidia (NASDAQ:NVDA)’s blowout forecast sparked a rally in AI-related firms and the broader U.S. stock market.
The company, which has received a near $3.7 million investment by Nvidia, late on Thursday posted fourth-quarter revenue of $17.15 million, slightly below analysts’ estimate of $17.75 million.
Net loss of $0.07 per share was bigger than expectation for a loss of $0.06, as per LSEG data.
The midpoint of its 2024 revenue forecast of $63 million-$77 million was above Wall Street estimates.
On Thursday, C3.ai (NYSE:AI)’s strong third-quarter results and full-year revenue forecast had strengthened the AI stocks rally. The AI software firm’s shares were down 4.2% after a 49% jump in February.
Still, D.A. Davidson maintained a “buy” rating and raised the price target to $7.5 from $5.0, saying “SoundHound is winning market share and has customers knocking at its doors.”
SoundHound AI shares fall as disappointing results temper rally
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