SoundHound AI shares fall as disappointing results temper rally (updated)

Guardforce AI

01/03/2024 14:48

(Changes share performance in paragraph 1, 2, 7)
       March 1 (Reuters) - Shares of SoundHound AI Inc  SOUN.O 
slumped 24% on Friday after the AI voice provider posted
downbeat quarterly results, taking some shine off a bumper rally
last month fueled by surging interest in artificial
intelligence.
    The company's shares, last at $5.7, were poised for their
steepest one-day fall in 14 months. 
    The declines also pulled down AI-related stocks including
Guardforce AI  GFAI.O , Bullfrog AI Holdings  BFRG.O  and
BigBear.ai Holdings  BBAI.N  between 1% and 8%.
    The stock surged 350% in February, marking its best-ever
monthly gain, after AI poster child Nvidia's  NVDA.O  blowout
forecast sparked a rally in AI-related firms and the broader
U.S. stock market.
    The company, which has received a near $3.7 million
investment by Nvidia, late on Thursday posted fourth-quarter
revenue of $17.15 million, slightly below analysts' estimate of
$17.75 million.
    Net loss of $0.07 per share was bigger than expectation for
a loss of $0.06, as per LSEG data.
    The midpoint of its 2024 revenue forecast of $63 million-$77
million was above Wall Street estimates.     
    On Thursday, C3.ai's  AI.N  strong third-quarter results and
full-year revenue forecast had strengthened the AI stocks rally.
The AI software firm's shares were down 4.2% after a 49% jump in
February.
    Still, D.A. Davidson maintained a "buy" rating and raised
the price target to $7.5 from $5.0, saying "SoundHound is
winning market share and has customers knocking at its doors." 

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SoundHound AI    https://tmsnrt.rs/3ww4NlE
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 (Reporting by Ankika Biswas in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Ankika.Biswas@thomsonreuters.com;))