Market Update
As of 11:45 a.m. ET, Tuesday’s trading has seen SoundHound AI (NASDAQ: SOUN) stock plummeting by an impressive 8%. The company’s share price had initially dipped as much as 11% earlier in the session, reflecting the broader market sentiment.
Market Performance
- S&P 500 Index: Down 0.5%
- Nasdaq Composite Index: Down 1.2%
Investor Expectations and Trading Pressure
The sell-off of SoundHound AI stock can be attributed to two primary factors:
- Broader Market Selling Pressures: The current market backdrop is characterized by an uptick in selling pressures, which has impacted the company’s share price.
- Elevated Investor Expectations for CES News: Some investors had anticipated that SoundHound AI would receive significant attention or even a mention during Nvidia CEO Jensen Huang’s keynote address at this year’s Consumer Electronics Show (CES).
Nvidia and SoundHound AI Relationship
SoundHound AI’s connection to Nvidia is another reason behind the sell-off:
- Investment by Nvidia: The tech leader has invested in SoundHound, creating a potential catalyst for substantial stock price movements.
- Impact of Unrelated News: Even seemingly unrelated news from Nvidia can significantly influence SoundHound AI’s stock performance.
CES Unveiling
Although the company unveiled its first in-vehicle voice commerce platform at CES, investors might have been expecting more groundbreaking announcements:
- Direct Restaurant Ordering: The new platform allows users to order from restaurants directly through their vehicle’s infotainment system.
- CES Booth and Presentation: SoundHound is demoing the platform at its CES booth and will be presenting through January 10.
Growth Projections
SoundHound AI’s business prospects remain promising, despite the current market fluctuations:
- 82% Sales Growth Target for 2024: The company’s management has raised this midpoint sales growth target.
- Accelerating Sales Growth in 2025: SoundHound expects its sales to accelerate to more than double in 2025.
Investment Considerations
While investing in SoundHound AI is a high-risk, high-reward proposition:
- Impressive Growth and Opportunities Ahead: The company’s scalable platform has various use cases yet to be tapped.
- Motley Fool Stock Advisor Recommendation: However, the Motley Fool analyst team didn’t include SoundHound AI among their top 10 stock picks for investors.
Get Started with Stock Advisor
Consider investing in these top-performing stocks:
- Monster Returns in Coming Years: The recommended stocks have shown significant growth potential.
- Stock Advisor Service: With over quadrupled returns since 2002, this service provides an easy-to-follow blueprint for success.
Disclaimer: This article is not a recommendation to invest. Please do your own research and consider consulting with a financial advisor before making any investment decisions.