SoundHound AI (SOUN) experienced a notable decline today, closing at $14.09, down 6.19% from the previous close of $15.02. The stock opened at $14.44, reached a high of $14.59, and hit a low of $13.30, indicating a volatile trading session. The trading volume was 56,246,617 shares, which is 85.23% of the average volume, suggesting active trading but not at peak levels.
The decline in SOUN's stock price can be attributed to several factors. A recent analysis on Reddit highlighted a bearish technical outlook, with the stock closing below its 9-day and 20-day exponential moving averages and approaching its 50-day EMA. The MACD indicator also showed a bearish crossover, signaling a potential downward trend. Additionally, discussions on Reddit reflected mixed sentiment, with some users expressing skepticism about the stock's potential due to its partnerships rather than leading innovations.
External economic factors also played a role in the stock's decline. A recent U.S. jobs report showed that 256,000 net jobs were added in December, surpassing expectations and leading to concerns about potential inflation and the likelihood of the Federal Reserve cutting interest rates. This development negatively impacted growth-dependent stocks like SoundHound AI, which are sensitive to interest rate changes.
Despite the challenges, some investors remain optimistic about SoundHound AI's long-term prospects, citing its strong sales momentum and growth potential in the AI market. However, the company's high valuation and reliance on growth in a competitive market continue to pose risks.