SoundHound AI (SOUN) saw a significant rise in its stock price on January 21, closing at $16.52, up 21.11% from the previous close of $13.64. The stock opened at $13.85 and reached a high of $16.54, with trading volume at 125% of the average. The surge was primarily driven by the announcement of a strategic partnership with Rekor Systems, which aims to integrate SoundHound's voice AI with Rekor's vehicle recognition software to enhance emergency vehicle technology. This collaboration is expected to improve safety and operational efficiency for law enforcement and first responders by enabling hands-free operation of critical vehicle systems.
The partnership news was well-received on social media, with Reddit users expressing optimism about the potential impact on emergency services. One user noted, "This technology agreement between Rekor and SH can be used by Medical Emergency professionals and it will make difficult jobs much easier." Another highlighted the market's positive reaction, stating, "Rekor stock is up 20% with the partnership."
Additionally, the stock benefited from recent policy changes under President Trump's administration, which rescinded a Biden-era executive order mandating AI software developers to share safety test results with the government. This regulatory easing is perceived to reduce risks for AI investors, contributing to the stock's rally.
Despite the positive developments, some caution is advised due to the stock's high valuation and financial warning signs, such as a low Piotroski F-Score and insider selling.