SoundHound AI Stock Tumbles After Q4 Earnings Miss

Despite a recent surge fueled by AI interest, SoundHound's shares drop sharply, though analysts remain optimistic about its future.

SoundHound AI Inc shares plummeted up to 25% following disappointing fourth-quarter results, marking its steepest one-day fall in 14 months.
The company's stock had surged 350% in February, driven by a broader rally in AI-related firms, sparked by Nvidia's optimistic forecast.
Despite the quarterly setback, SoundHound's 2024 revenue forecast midpoint is above Wall Street estimates, indicating potential recovery.
Analysts remain positive, with D.A. Davidson maintaining a 'buy' rating and raising the price target to $7.5 from $5.0.
SoundHound's backlog of subscriptions and bookings doubled from the previous year, signaling strong future potential.