Shares of conversational artificial intelligence (AI) company SoundHound AI (NASDAQ: SOUN) had jumped by 18.7% this week as of early Friday, according to data from S&P Global Market Intelligence, as investors reacted to two pieces of news.

The beginning of 2025, however, has been a much different story. As of Jan. 20, the stock has fallen more than 31% out of the gate. Whether investors are cashing out their profits from last year or are simply having second thoughts about the stock and its valuation is the big question right now.

After a remarkable 2024 in which SoundHound AI (NASDAQ: SOUN) stock surged in price by a stunning 836%, the new year has got off to a disastrous start as the voice artificial intelligence (AI) solutions provider has already lost more than 17% of its value as of this writing and was down as much as 36% earlier in the month.

SoundHound AI (NASDAQ: SOUN) is one of the more popular ways to invest in AI. Because it's a pure play on AI technology, it stands to benefit more from a general technological shift to AI than some of the more established big tech players.

SoundHound AI, Inc. (NASDAQ:SOUN – Get Free Report) has been given a consensus recommendation of “Moderate Buy” by the seven ratings firms that are currently covering the company, Marketbeat.com reports.

Is SoundHound AI worth your investment dollars today? See why you might be better off buying a pair of lower-priced growth stocks in January.

SoundHound AI Inc (SOUN) stock saw a modest uptick, ending the day at $16.4 which represents a slight increase of $0.02 or 0.12% from the prior close of $16.38. The stock opened at $16.05 and touched a low of $15.

We warn of overvaluation and declining stock in SoundHound due to AI hype and recent acquisition and advise to lock in gains. Read more on SOUN stock here.

If you want to stay updated on the latest options trades for SoundHound AI, Benzinga Pro gives you real-time options trades alerts.

Bullish option flow detected in SoundHound AI with 62,091 calls trading, 1.2x expected, and implied vol increasing almost 2 points to 123.87%. 1/24 weekly 15 calls and 1/24 weekly

SoundHound AI (NASDAQ: SOUN) is one of the more popular ways to invest in AI. Because it's a pure play on AI technology, it stands to benefit more from a general technological shift to AI than ...

Tire manufacturer Bridgestone Americas is closing its LaVergne, Tennessee, truck and bus radial tire plant and laying off 700 workers there, the company announced in a news release. Bridgestone said the closure will help the company “optimize its business footprint” and “strengthen its competitiveness.