What's Going On With SoundHound AI Stock Thursday?

SoundHound AI Inc SOUN shares are in the spotlight Thursday ahead of earnings. Here’s what you need to know.

What To Know: SoundHound is set to report its fourth-quarter financial results after the bell. The company is expected to report a loss of 6 cents per share and revenue of $17.746 million, according to Benzinga Pro.

SoundHound shares got a lift late Wednesday after C3.ai stock surged on strong third-quarter earnings. C3.ai beat analyst estimates on both the top and bottom line and highlighted accelerating demand for AI.

“Our significant first mover advantage in Enterprise AI is generating tailwinds as market interest in adopting AI accelerates,” the company said.

Northland Capital Markets analyst Michael Latimore downgraded SoundHound AI from Outperform to Market Perform on Wednesday, one day ahead of earnings. The downgrade comes after the stock surged more than 70% in the last five trading sessions and nearly 300% over the last month.

SoundHound shares closed Monday up 46.7% amid speculation that the company could be involved with a new collaborative initiative aimed at integrating AI into cellular technology.

It’s worth noting that SoundHound shares surged alongside several other AI-related names following Nvidia's blowout quarterly results last week. Nvidia also reported investments in multiple companies in a 13-F filing with the SEC about two weeks ago. SoundHound was among the names and the stock rallied when the filing was released. 

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How To Buy SOUN Stock

By now you're likely curious about how to participate in the market for SoundHound AI – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the case of SoundHound AI, which is trading at $6.86 as of publishing time, $100 would buy you 14.58 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

SOUN Price Action: SoundHound shares were up 9.46% at $6.94 at the time of writing, according to Benzinga Pro.

Photo: Swello from Unsplash.