Why SoundHound AI Stock Fell 11% Today
Shares of SoundHound AI (NASDAQ: SOUN) took a steep dip on Tuesday. The company, which uses artificial intelligence (AI) to provide user-friendly voice control tools, had taken an 11% hit as of 3:07 p.m. ET on a consistent downward trend. There was no company-specific news driving this price drop, just a bearish market day undermining the stock's recent gains.
All kinds of market darling stocks fell on Tuesday as earnings reports from the retail sector showed signs of tariff-based inflation. That's bad news for a stock like SoundHound AI. The company is unprofitable and its stock is trading on long-term revenue growth opportunities instead. Even so, SoundHound AI shares are changing hands at 41 times trailing sales -- after Tuesday's sharp price correction.
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