SoundHound AI, Inc. is experiencing a notable decline in its stock price today, driven by a combination of factors. A significant contributor to the downward pressure is the strategic shorting by investors coinciding with the company's demonstration at CES 2025. According to discussions on Reddit, shorts have targeted the stock to make it appear less appealing to retail investors, with one user noting, "The shorts came up with a plan to attack with a vengeance on the day of CES when they knew SoundHound A.I. would be demoing the Nvidia Blackwell chip and their new voice A.I. food ordering while driving." This strategic move by short sellers is seen as an attempt to drive the price down to re-enter at a more favorable level.
Despite the negative price action, some investors remain optimistic about the company's long-term prospects, citing its innovative AI-powered portfolio and recent product launches. SoundHound's unveiling of the first-ever in-vehicle voice commerce platform at CES 2025 has been highlighted as a significant advancement, with the potential to open new revenue streams through partnerships with automakers and restaurants. However, concerns about the company's valuation and the broader market shift towards bonds are also influencing investor sentiment.
SoundHound AI's stock is currently trading at $15.90, down 11.54% from the previous close of $17.98. The stock opened at $16.55 and has seen a low of $15.52 and a high of $17.10 so far today. Despite being just 30 minutes into the trading day, the stock has already seen a volume of 24,927,479 shares, representing 38.90% of its average daily volume of 64,082,808 shares, indicating significant trading activity this morning.