There’s a trading frenzy happening this week in shares of
SoundHound AI,
a provider of AI-infused voice response systems.
SoundHound shares are up 20% on Tuesday, bringing the stock’s two-day rally to 76%. The move comes on huge volume: SoundHound shares traded 203.6 million shares on Monday. The turnover at roughly the half-way point in Tuesday’s session had already topped 237 million shares. SoundHound has a total of 247 million shares outstanding.
The company declined to comment on the move, noting that it’s operating in a pre-earnings report quiet period. SoundHound is due to report results after the close of trading on Thursday.
Wall Street estimates as tracked by FactSet call for the company to generate December quarter sales of $17.8 million, with a loss of 6 cents a share. For the March quarter, estimates call for sales of $11.9 million, and a loss of 8 cents a share.
A short-selling firm called Capybara Research on Tuesday posted a report stating that SoundHound “appears to be leveraging current AI excitement to attract investment and attention, despite a lack of substantial growth or success in its core business areas.”
SoundHound isn’t the only artificial intelligence software stock taking off this week, as investors cast around for opportunities to play the trend beyond chip names like
Nvidia
and
Advanced Micro Devices
and hardware providers like
Super Micro Computer
and
Arista Networks.
Shares of
BigBear.ai
have rallied 30% on Tuesday, and 67% so far this week, also without any obvious catalyst. The company describes itself on its website as a provider of “decision intelligence solutions for supply chains and logistics, enterprise operations, manned-unmanned teaming in autonomous systems, and cybersecurity.”
Shares of both
Palantir
and C3.AI are each 3% higher on Tuesday.
C3.ai
is scheduled to report financial results on Wednesday after the close of trading.
Write to Eric J. Savitz at [email protected]
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