We recently published a list of Friday’s 10 Worst Performing Stocks. In this article, we are going to take a look at where SoundHound AI Inc. (NASDAQ:SOUN) stands against other Friday’s worst performing stocks.
The stock market suffered a bloodbath anew on Friday as investors digested news of a growing trade war, with China making good on its promise with a steep tariff on US goods.
As of 2:55 PM, the S&P 500 lost 5.47 percent of its value, the tech-heavy Nasdaq fell 5.37 percent, and the Dow Jones was down by 5.09 percent.
Following President Donald Trump’s imposition of hefty tariffs on all imports to the US, China on Friday struck back with a 34-percent tariff on US goods. The tariffs will begin on April 10.
Ten individual stocks mirrored a broader market pessimism, recording steep intra-day losses. In this article, let us explore Friday’s worst intra-day performers and the reasons behind their decline.
To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5 million in trading volume.
A software engineer focused on a computer screen, writing code to create a conversational assistant.
SoundHound AI Inc. (NASDAQ:SOUN)
Shares of SoundHound AI declined by 11.99 percent at intra-day trading on Friday as investor sentiment was dragged down by the ongoing global trade war and news that it was facing a class action lawsuit alleging the company of making materially false information.
In a statement on Friday, law firm Wolf Haldenstein Adler Freeman & Herz LLP said that a class action lawsuit had been officially filed against SOUN on behalf of a class consisting of all persons and entities that purchased its shares between May 10, 2024, and March 3, 2025.
Last March 4, SOUN announced that it was unable to file its annual report for 2024 due to the complexity of accounting for the SYNQ3 and Amelia acquisitions.
The company said it required additional time to prepare financial statements and accompanying notes and that it had identified material weaknesses in its internal control over financial reporting.
Subsequently, on March 11, SOUN said that the company “did not design and maintain effective controls related to the identification of and accounting for certain non-routine, unusual or complex transactions, including the accounting for complex financing transactions and acquisitions.”
According to the law firm, the disclosure of its lack of effective controls was impairing its ability to account for corporate acquisitions.
Overall, SOUN ranks 8th on our list of Friday’s worst performing stocks. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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 this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
