Trading Frenzy in AI Stocks
SoundHound AI Shares Surge Amid Market Excitement
SoundHound AI, a company specializing in AI-infused voice response systems, is experiencing a significant trading frenzy this week. The stock has seen a remarkable 20% jump on Tuesday, pushing its two-day rally to an impressive 76%. This surge in stock price has been accompanied by high trading volume, with over 203.6 million shares exchanged on Monday alone. By midday Tuesday, trading volume had already surpassed 237 million shares, out of a total of 247 million outstanding shares.
Pre-Earnings Quiet Period Amidst Anticipation
As excitement builds around SoundHound's performance, the company has chosen to remain silent, citing a pre-earnings report quiet period. Investors eagerly await the release of its financial results after the close of trading on Thursday. Market analysts, as tracked by FactSet, predict December quarter sales of $17.8 million with a loss of 6 cents per share. For the upcoming March quarter, estimates indicate sales of $11.9 million and a loss of 8 cents per share.
Criticism and Excitement in the AI Sector
Despite its recent success, SoundHound faces criticism from a short-selling firm called Capybara Research. The report released on Tuesday questions the company's growth and success in core business areas, suggesting a reliance on AI hype to attract investments.
SoundHound is not alone in the surging AI software market this week. Companies like BigBear.ai have seen significant gains, rallying 30% on Tuesday and 67% throughout the week without a clear catalyst. BigBear.ai specializes in decision intelligence solutions for various industries including supply chains, logistics, autonomous systems, and cybersecurity.
Broad Market Movement in AI Stocks
In addition to SoundHound and BigBear.ai, other AI software companies are also experiencing positive movement. Shares of Palantir and C3.AI have each risen by 3% on Tuesday. C3.ai is preparing to release its financial results post-market on Wednesday.
Stay tuned for further updates on the dynamic AI stock market landscape.
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