SoundHound AI (SOUN) experienced a volatile trading session on January 16, 2025, closing at $13.97, a slight increase of 0.58% from the previous close of $13.89. The stock opened at $14.15, reached a high of $14.86, and dipped to a low of $13.37, indicating significant intraday fluctuations. Despite the positive close, after-hours trading saw a decline of 0.72%, bringing the price down to $13.87.
The day's trading was influenced by a mix of positive and negative factors. On the positive side, SoundHound AI benefited from favorable economic data, with the latest Consumer Price Index (CPI) report showing core inflation at 3.2% for December, slightly below expectations. This fueled optimism that the Federal Reserve may continue to cut interest rates, creating a supportive environment for growth stocks like SoundHound AI. Additionally, recent analyst upgrades, including Northland Securities raising its price target from $6 to $8, contributed to the positive sentiment.
However, the stock faced downward pressure due to concerns about short-selling activity. Reddit discussions highlighted skepticism about the stock's performance, with one user noting, "Noticing the forceful dip caused by short sellers, every day in the morning, is what ruined my view of this stock." This sentiment was echoed by other users who expressed caution about the stock's volatility and the impact of short sellers.
Institutional investment also played a role, with SeaCrest Wealth Management LLC investing $944,000 in SoundHound, signaling confidence in the company's future prospects. Despite this, the stock's high valuation and competition from major players like Google and Amazon remain concerns for investors.