We recently published a list of 10 Stocks Defy Monday’s Market Optimism. In this article, we are going to take a look at where SoundHound AI Inc. (NASDAQ:SOUN) stands against other stocks that defy Monday’s market optimism.
US shares kicked off Monday’s trading with a bounceback from last week’s pessimistic sentiment, as economies took a pause from their tariff war.
Additionally, investors breathed a sigh of relief on the February retail sales report which came in not as bad as feared.
According to the latest figures, retail sales rose 0.2 percent, albeit below the 0.6 percent as expected by analysts. Excluding autos, sales are up by 0.3 percent, in line with economists’ expectations.
Following the news, the Dow Jones clocked in a 0.85-percent gain, followed by the S&P 500 with 0.64 percent, and the tech-heavy Nasdaq with 0.31 percent.
Meanwhile, 10 companies bucked a wider optimistic sentiment over a flurry of negative corporate news that weighed down on their shares. In this article, we have listed Monday’s 10 worst performers and detailed the reasons behind their drop.
To come up with the list, we considered only the stocks with $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)
SoundHound AI saw its share prices decrease by 2.51 percent on Monday to end at $10.08 each following news that it was being investigated by a shareholder law firm over allegations that the company may have issued materially misleading business information to the investing public.
The investigation stemmed from a Notification of Late Filing with the Securities and Exchange Commission for its annual report last year due to the complexity of accounting for its prior acquisitions of Synq3 and Amelia Holdings.
The notification furthered that SOUN “has identified material weaknesses in its internal control over financial reporting. These material weaknesses continue to exist as of December 31, 2024.”
SOUN was expected to officially file its annual report by Tuesday, March 18, 2025.
Meanwhile, SOUN is participating in the 2025 NVIDIA GPU Technology Conference (GTC), from March 17-21 in San Jose, California, where it showcases cutting-edge voice AI innovations that are transforming the automotive industry and redefining in-car experiences.
Overall, SOUN ranks 8th on our list of stocks that defy Monday’s market optimism. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some 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 as promising as SOUN but 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.