SoundHound AI (SOUN) experienced a significant decline today, closing at $17.98, down 9.63% from the previous close of $19.89. The stock opened at $20.15, reached a high of $20.46, but fell to a low of $17.50, indicating a volatile trading session. The trading volume was notably high at 72,368,775 shares, surpassing the average volume of 63,042,340 shares.
The decline in SOUN's stock price can be attributed to several factors. Despite the company's recent unveiling of its in-vehicle voice assistant at CES 2025, investor skepticism about the immediate impact of this announcement has contributed to the downward pressure. Discussions on Reddit reflect doubts about the company's public relations strategy, with one user stating, "I'm starting to doubt SOUN's PR leadership. Why not make a big deal of what is a big deal?" Additionally, concerns about the company's valuation persist, as highlighted in a recent analysis describing SoundHound's valuation as "detached from fundamentals."
Further exacerbating the decline, SoundHound AI was notably absent from Nvidia's CES presentation, despite expectations for a mention. This absence disappointed investors, as Nvidia's investment in SoundHound often influences the latter's stock movements. The broader market downturn also played a role, with the S&P 500 and Nasdaq Composite indices both experiencing declines.
Insider selling activity has raised additional concerns, with significant selling of 3,002,826 shares over the past three months and no insider purchases, suggesting a lack of confidence from those closest to the company's operations.