SoundHound AI, Inc. (SOUN) is experiencing a notable decline in its stock price today, with discussions on Reddit highlighting concerns over its valuation compared to peers. A user pointed out, "SoundHound SOUN revenue is 84 million and market cap is 8.3 billion," suggesting that the stock might be overvalued. This sentiment is echoed by others who are drawing comparisons with LivePerson (LPSN), which is seen as having stronger fundamentals and a more attractive valuation. The ongoing debate about SoundHound's market cap and revenue disparity is contributing to investor uncertainty.
Additionally, the broader market environment is adding to the pressure on SOUN's stock. The imposition of tariffs has created significant uncertainty, particularly affecting small-cap companies like SoundHound. A Reddit user noted, "The ongoing discussion around tariffs and inflation has created substantial uncertainty in the market—a condition that markets notoriously dislike." This uncertainty is likely exacerbating the selling activity as investors reassess their positions in the face of potential economic headwinds.
SoundHound AI's stock is currently trading at $19.78, down 12.79% from the previous close of $22.68. Despite being just four hours into the trading day, the stock has already seen a volume of 46,373,647 shares, which is 79.57% of its average daily volume of 58,283,552 shares, indicating active trading.