Why SoundHound AI (SOUN) Is Among Last Week’s Biggest Losers?

We recently published a list of These 10 Firms Were Last Week’s Biggest Losers. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other firms that were last week’s biggest losers.

Ten companies fell significantly last week, mirroring a broader market downturn, as investors sold off positions following disappointing news and data that weighed heavily on market sentiment.

On Friday, the Dow Jones recorded its largest weekly drop, falling 1.07%, while the S&P’s main index and Nasdaq declined by 0.71% and 0.62%, respectively.

To come up with this week’s top decliners, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) saw its share prices last week tumble by 28.66 percent to finish at $14.09 apiece versus the $19.75 registered in the week prior, with analysts pointing to hotter-than-expected labor market data as having weighed on investor sentiment.

Economists earlier expected that the Job Openings and Labour Turnover Survey (JOLTS) for November would decrease to 7.7 million from the 7.8 million reported in October, yet November’s actual data settled at 8.1 million jobs.

The increase fueled worries about higher inflation coupled with higher Treasury yields.

In addition, President-elect Donald Trump’s earlier statement that he would fast-track his tariff strategy by declaring a potential national emergency added fuel to the fire.

As SoundHound AI, Inc. (NASDAQ:SOUN) is a growth stock, it is more sensitive to macroeconomic shifts that could lead to a decline in share prices.

Overall, SOUN ranks 3rd on our list of firms that were last week’s biggest losers. 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. 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.