SoundHound AI soars as speculative trade reignites
After an god-awful 35% drop to open 2025, SoundHound AI shares are getting a huge relief rally on Wednesday following a softer inflation report that sparked a massive drop in long-term interest rates and set off a surge in retail trading of highly speculative shares.
In fairness, the voice AI software company was due for a drop after rising more than 800% in 2024. But those gains shrank down to about 500% in the first few sessions of the year.
The question now is whether the rough start to the year has people ready to use today’s rally as an exit opportunity, or whether the rise could restore some of last year’s swagger among SoundHound holders, many of whom claim to be true believers in the company.
Judging from the charts, it’ll be a hot debate, with the stock just barely retaking its 50-day moving average Wednesday after falling sharply below it in recent days.
That drop suggested a serious break in the stock’s momentum. Time will tell if low interest rates can help shares get their mojo back.