The Rollercoaster Ride of SoundHound AI Stock: Understanding the Big Swings
Why Did SoundHound AI Stock Soar, Then Sink Today?
A huge gain for this up-and-coming AI stock was quickly reversed. SoundHound AI (NASDAQ: SOUN) was like a yo-yo on Thursday morning. Shares of the artificial intelligence (AI) systems developer soared as much as 18.5% higher. By 11:05 a.m. ET, though, the stock was down 5.7%.
What's behind SoundHound AI's big swings today?
It's not clear. The company didn't make any announcements that would explain the initial gain or the subsequent sell-off. SoundHound AI submitted regulatory filings to the U.S. Securities and Exchange Commission (SEC) on Wednesday, revealing some recent stock sales by Morgan Stanley. However, those sales doesn't seem to be large enough to move the needle very much.
Perhaps some short-sellers could have been covering their positions early on Thursday -- making moves that drove the stock higher. Maybe once they completed their buying, the stock quickly fell. However, this is just a theory and can't be proven.
- What should investors make of SoundHound AI's volatility?
- Should anyone be surprised by SoundHound AI's volatility? Nope. For a high-flying AI stock with a short percentage of float of over 15%, volatility comes with the territory.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.