We recently published a list of 15 Stocks That Took a Nosedive in January. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other stocks that took a nosedive in January.
Historically, the S&P 500’s performance in January sets the pace for the rest of the year. According to Jared Blikre, Yahoo Finance Markets Editor, the S&P 500 returned nearly 17% in January, which is pretty impressive because a positive January usually translates as a positive year for the markets. Jared also added that while the energy and utilities sectors are lagging, the communication services and healthcare segments are showing signs of strength.
At the same time, while the S&P 500 remained positive at the end of January, some stocks declined due to various reasons especially the launch of the Chinese OpenAI rival, DeepSeek, and new regulations amid the new administration.
15 companies in diverse sectors such as the financials, biotechnology, healthcare, technology, and energy industries, declined due to unsupportive market conditions, macroeconomic environment, and other factors. That said, let’s take a look at the 15 stocks that took a nosedive in January.
To come up with the 15 names, we only considered stocks with a market capitalization of more than $2 billion. We then shortlisted the stocks based on their performance in the past quarter and picked the 15 with the largest 30-day decline from January 3, 2024, to February 3, 2025.
At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A software engineer focused on a computer screen, writing code to create a conversational assistant.
SoundHound AI, Inc. (NASDAQ:SOUN)
30-day Decline as of February 3, 2025: 35.5%
SoundHound AI, Inc. (NASDAQ:SOUN), an emerging AI company, went from $20.62 on January 3 to $13.34 on February 3, marking a 35.5% decline over 30 days. During this period, the company registered the largest decline from $19.89 on January 6 to $12.82 on January 13.
SoundHound AI, Inc. (NASDAQ:SOUN), a conversational intelligence company, has grown by 788% in the past year. However, SOUN was unable to maintain the upward trajectory in January, following the CES trade show. Despite having displayed groundbreaking technologies such as its in-vehicle voice assistant, the stock declined because of elevated investor expectations.
In addition to that, despite NVIDIA having an investment in SOUN, the CEO left the event without mentioning the stock. While the stock has been performing poorly since the CES trade show, the stock declined even further following the launch of the Chinese startup, DeepSeek.
Despite the rough start to the year, SoundHound AI, Inc. (NASDAQ:SOUN) maintains solid goals for the rest of the year, with its projections expected to double by the end of the year. In addition to that, the company is also expanding its footprint by securing deals with major companies across the globe like LCID.
Overall, SOUN ranks 2nd on our list of stocks that took a nosedive in January. While we acknowledge the potential of SOUN to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.