SoundHound AI (SOUN) saw a significant rise in its stock price on January 15th, closing at $13.89, up 8.60% from the previous close of $12.79. The stock opened at $13.40 and reached an intraday high of $14.70, with a low of $13.36. The trading volume was 72,702,775 shares, surpassing the average volume of 67,447,406 shares, indicating heightened investor interest.
The upward movement was primarily driven by favorable inflation data and positive analyst coverage. The latest Consumer Price Index (CPI) report showed core inflation at 3.2% for December, below the expected 3.3%, which boosted investor confidence in a potential continuation of interest rate cuts by the Federal Reserve. This macroeconomic backdrop is particularly beneficial for growth stocks like SoundHound AI, which are sensitive to interest rate changes due to their growth-dependent valuations.
Additionally, Northland Securities raised its price target for SoundHound AI from $6 to $8, maintaining a market perform rating. This follows other recent analyst upgrades, including Wedbush's increase from $10 to $22 and H.C. Wainwright's from $8 to $26, reflecting improved sentiment towards the company's growth prospects in the conversational AI space.
On social media, discussions highlighted the company's strategic partnerships and technological advancements. Reddit users speculated on the potential impact of SoundHound's technology being integrated into automotive collaborations, such as with Honda and Sony's AFEELA 1 car, and Lucid Group Inc., showcased at CES. Despite some skepticism about the stock's valuation, the overall sentiment was optimistic about SoundHound's expanding presence in various industries.