SoundHound AI Stock Trades At Record Highs Amid Ongoing Positive News Flow: Retail Chatter Grows Louder

SoundHound AI, Inc. ($SOUN) saw considerable retail chatter among tech stocks on Friday amid the ongoing positive news flow on this voice and conversational artificial intelligence (AI) solutions provider.

 Message volume for SoundHound AI spiked nearly 170% on Friday, relative to the previous 24 hours.

After trading at sub-$6 level for much of the year, the stock broke out in the aftermath of the Nov. 5 presidential election. Optimism over business-friendly policies from the incoming administration under President-elect Donald Trump provided the initial thrust.

Follow-through buying materialized after the company announced in early December that fast-casual taco chain Torchy’s Taco has begun to roll out its advanced voice AI smart ordering product. The stock settled the session on Dec. 5, up over 31% at $13.33. 

Subsequently, the company announced its participation at the Consumer Electronics Show to be held in Las Vegas, between Jan. 7-10, 2025. It said it would showcase its first-of-its-kind voice AI for automotive at the show.

SoundHound AI announced another deal last week as it partnered with Church’s Texas Chicken, a quick-service chicken restaurant chain, to provide the latter with a voice AI-powered drive-thru ordering system.

On Thursday, the company said Frost & Sullivan named its Amelia conversational AI platform as a leader in the "2024 Frost Radar: Enterprise Conversational AI in healthcare." The business consulting firm estimates the enterprise conversational AI in healthcare market to be at $2.34 billion by the end of 2027, growing at a compounded annual growth rate of 17.2%.

 Nitin Manocha, Senior Industry Analyst at Frost & Sullivan, said, “With SoundHound’s recent acquisition of Amelia, the company now ranks among the largest publicly traded conversational AI companies."

"By integrating SoundHound’s advanced voice AI capabilities with Amelia’s enterprise platform, the company has a tremendous opportunity to unlock more complex use cases and drive real value in the healthcare sector.”

On Stocktwits, sentiment toward SoundHound AI stock remained ‘neutral’ (48/100), with message volume staying at ‘low’ levels. 

SOUN sentiment and message volume December 16, 2024, as of 3:16 am ET | Source: Stocktwits

While a Stocktwits user highlighted the incongruence between the valuation and the company’s balance sheet, another saw it as a growth stock, trading on the revenue and profit growth potential.

SoundHound ended Friday’s session up 23.70% at $16.91, marking an all-time high. The stock has gained nearly 700% for the year. About 22.08% of the company's outstanding shares are shorted, making it an ideal candidate for a short squeeze. 

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