SoundHound AI (SOUN) stock went on a roller coaster ride Tuesday ahead of the company’s third-quarter report. The stock jumped in early trades as investors bet on continued adoption of its conversational artificial intelligence voice technology. But SOUN stock dropped in midmorning trades.
The Santa Clara, Calif.-based company will release its Q3 results after the market close on Tuesday. Analysts polled by FactSet expect SoundHound to lose 7 cents a share on sales of $23 million. In the year-earlier period, it lost 9 cents a share on sales of $13.3 million.
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SoundHound’s technology is used by companies to interact with customers in call centers and restaurant drive-thrus. Its voice-response technology also can be found in cars and televisions.
On Nov. 7, SoundHound stock broke out of a cup-with-handle base at a buy point of 6.25, according to IBD MarketSurge charts. SOUN stock was responding to unconfirmed reports that Taco Bell, a unit of Yum Brands (YUM), was using SoundHound technology for its drive-thru order-taking.
In morning trades on the stock market today, SoundHound stock slid more than 4% to 7.42.
Nvidia Owns Stake In SoundHound Stock
Restaurant chains using SoundHound technology include Chipotle Mexican Grill (CMG), Jersey Mike’s Subs and White Castle.
SoundHound stock jumped in February after AI chipmaker Nvidia (NVDA) revealed that it had invested in the company.
SOUN stock went public in April 2022 after its merger with a special-purpose acquisition company. It began trading at 8.72.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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