A number of stocks fell in the afternoon session after investors grew increasingly concerned that the billions of dollars being invested into artificial intelligence may not generate sufficient profits.
Despite pressured fundamentals, SoundHound retains strong retail support, while analysts are optimistic about its long-term conversational AI opportunity.
Shares of voice AI technology company SoundHound AI (NASDAQ:SOUN) fell 5.6% in the morning session after broader weakness in the artificial intelligence sector weighed on the stock as tech giant Oracle raised investor concerns about an AI bubble.
The global Information Technology (IT) sector is currently experiencing an unprecedented surge in growth and investment, poised to redefine the economic landscape as 2025 draws to a close. With worldwide IT spending projected to soar to $5.43 trillion in 2025 and an anticipated jump to over $6 trillion by
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.
Wrapping up Q3 earnings, we look at the numbers and key takeaways for the automation software stocks, including Pegasystems (NASDAQ:PEGA) and its peers.
Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
SoundHound's expensive valuation could weigh on the stock in the coming year, which is why this attractively valued company could overtake its market cap.
