SoundHound AI (SOUN) experienced a notable decline today, closing at $22.68, down 5.30% from the previous close of $23.95. The stock opened at $23.00 and reached a low of $20.96 during the day, with trading volume slightly above average at 59,566,637 shares. The decline was influenced by a mix of market sentiment and broader market conditions.
Reddit discussions highlighted concerns about the stock's valuation, with users expressing caution about a potential correction. One post advised, "Be careful all. Don't be ashamed to take some lifestyle chips off the table. A big correction is due." This sentiment reflects a broader skepticism about the company's ability to meet high expectations amid economic uncertainties, including high interest rates and potential policy changes with the new administration.
Additionally, the broader market faced a sell-off, with major indexes like the Dow Jones Industrial Average and S&P 500 experiencing declines. This broad-based sell-off, particularly affecting tech and AI stocks, contributed to the downward pressure on SOUN. Analysts have mixed views on the market's future, with some predicting potential corrections in 2025 due to built-up optimism this year.
Despite recent positive analyst ratings, including a price target increase from HC Wainwright to $26.00, the stock faced pressure from insider selling activities. CEO Keyvan Mohajer and VP Majid Emami recently sold significant shares, which may have added to investor concerns.