SoundHound (SOUN) Gets Battered by AI Doubts

We recently published 10 Stocks Crash as AI Glow Fades. SoundHound AI, Inc. (NASDAQ:SOUN) is one of Wednesday’s worst performers.

SoundHound AI extended its losing streak to a fourth consecutive day on Wednesday, shedding 6.47 percent to close at $12.44 apiece as investors unloaded positions to mitigate risks surrounding the Artificial Intelligence industry.

SoundHound AI, Inc. (NASDAQ:SOUN) dropped alongside its AI counterparts after Altman announced over the weekend that an “AI bubble is forming” amid the industry’s increased spending.

Altman appeared to compare such a dynamic to the infamous dot-com bubble, a stock market crash centered on internet-based firms that led to a massive investor enthusiasm during the late 1990s.

Between 2000 and 2002, the tech-heavy Nasdaq lost nearly 80 percent of its value after many of these companies failed to generate revenue or profits.

In the second quarter of the year, SoundHound AI, Inc. (NASDAQ:SOUN) said revenues expanded by 217 percent to $42.68 million from only $13.46 million in the same period last year, but was not enough to bolster profits, having incurred a $74.7 million net loss during the period, marking a 100-percent increase from the $37.3 million net loss in the same comparable quarter.