What Happened?
Shares of voice AI technology company SoundHound AI (NASDAQ: SOUN) jumped 7% in the afternoon session after it experienced continued positive sentiment following the company's record second-quarter financial results reported in early August. The recent momentum follows a period where the stock has gained significantly, driven by the strong quarterly performance. In its last report, the voice AI company announced all-time high revenues of $42.7 million, which represented a growth of more than 200% year over year. Citing its strong presence in the automotive, enterprise, and restaurant verticals, SoundHound also raised its full-year outlook, signaling confidence to investors about its future performance.
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What Is The Market Telling Us
SoundHound AI’s shares are extremely volatile and have had 91 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 3.3% on the news that the company announced that its generative AI-powered voice assistant, SoundHound Chat AI Automotive, is now live in select Jeep vehicles across several European markets. This integration provides Jeep drivers and passengers with an advanced level of convenience and connectivity by blending in-vehicle controls with the power of generative AI. The technology allows users to go beyond basic commands and engage in more complex, conversational interactions, such as planning a trip, accessing information from the vehicle's manual, or asking follow-up questions. The rollout signifies a key production deployment for SoundHound's conversational AI technology within the automotive industry.
SoundHound AI is down 24.9% since the beginning of the year, and at $15.14 per share, it is trading 37.5% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $2,019.
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