We recently compiled a list of the 10 Firms Mirror Dow Jones Decline on Monday. In this article, we are going to take a look at where SoundHound AI Inc. (NASDAQ:SOUN) stands against the other stocks.
Ten companies kicked off this week’s trading mirroring a decline on Dow Jones with a series of catalysts dampening investor sentiment. In this article, let’s explore the reasons behind their decline.
To come up with Monday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.
A software engineer focused on a computer screen, writing code to create a conversational assistant.
SoundHound AI Inc. (NASDAQ:SOUN)
Shares of SoundHound AI snapped a two-day winning streak, closing down by 3.54 percent to $19.89 apiece as investors resorted to profit-taking.
According to analysts, investors sold off positions following Friday’s news that its rival Cerence expanded its partnership with technology giant Nvidia Corp. (NVDA) to enhance its CaLLM (Cerence Automotive Large Language Model) family of language models.
The collaboration aims to accelerate the development and deployment of generative AI for automotive applications, integrating both cloud-based and embedded solutions such as CaLLM Edge.
Despite the drop, prospects for SoundHound remained strong, fueled by the booming AI industry which allowed for a more bullish coverage.
Last week, SoundHound AI earned a buy rating and a higher target price from HC Wainwright from $8 per share to $26 apiece.
While Wainwright’s analysts noted that recent valuation gains were primarily driven by market excitement, they believed the company would perform well enough to support its growth-dependent valuation.
Overall SOUN ranks 10th on our list of the stocks that crashed today. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.