SOUN is rightfully caught in the recent Al selloff, most of us didnt see this coming cos NVDA and SMCI both posted solid numbers, but the interest rate cut expectations have been scaled back, and the entire market has been weak. If you look closely, the peak and troughs of ai stocks all coincide (at worst within a few days). What does this tell me? Its actually algos and quant funds trading it on market/sector trends. But because its super high beta (pronounced movements compared to market and sector), thats why it looks worse when its falling. But when the Al selloff reverses sharply, and it shall because of the short base and NVDA/SMCI likely to report stronger earnings, SOUN, assuming earnings/growth do not miss too much on the downside, will rally more than the market. You can think about this in the small vs large cap. $SoundHound AI Inc(SOUN)$
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