NEW YORK – Shares of SoundHound AI Inc. are experiencing a volatile trading day, with the stock attempting to recover from a morning sell-off. As of 11:37 AM EDT on July 3, the stock was trading at $11.16, down approximately 0.76% for the session.
The AI voice solutions company saw its stock open at $11.40, higher than the previous day’s close of 11.54** before sellers stepped in, pushing the price down to an intraday low of $11.08. The chart shows the stock is currently in a minor rebound phase from this low point.
SoundHound AI, which has a market capitalization of $4.46 billion, has a wide 52-week trading range, from a low of $3.87 to a high of $24.98, highlighting the stock’s inherent volatility and the significant price swings investors have seen over the past year.
Should You Buy or Sell SOUN Stock Today?
Analyzing the intraday chart provides mixed signals for traders and investors:
-
Bearish Signals: The predominant trend for the day has been downward. The failure to hold gains above the opening price and the subsequent decline to a new low suggest that sellers have had the upper hand for most of the morning. The stock is currently trading below its previous close, a negative sign for day traders.
-
Bullish Signals: The stock has found support at the $11.08 level and is showing signs of a reversal. This bounce off the day’s low could attract “dip buyers” looking for a short-term entry point. If the stock can sustain this upward momentum, it may attempt to reclaim higher levels later in the session.
Our Opinion on the Stock
SoundHound AI is a classic example of a high-volatility growth stock in the popular artificial intelligence sector. Its lack of a P/E ratio indicates that the company is not yet profitable, meaning its valuation is based on future growth expectations rather than current earnings.
The price action today reflects a struggle between early profit-takers and buyers seeing value at the lower end of the day’s range. The key level to watch is the support at $11.08. A break below this could signal further downside, while holding above it may provide a base for a stronger recovery. Given its volatile history, investors should be prepared for sharp and rapid price movements. Any investment in SoundHound AI should be considered with an understanding of the higher risks associated with speculative, non-profitable tech companies.
