SoundHound AI Options Volume Jump After Nvidia Exit
$SoundHound AI Inc(SOUN)$
Shares of SoundHound tumbled more than 30% to $10.65 at 12:26 p.m. in New York after Nvidia's 13-F filing with the Securities and Exchange Commission showed it no longer owned the stock as of the reporting period ended Dec. 31. Nvidia previously held 1.73 million of SoundHound shares, according to data compiled by Bloomberg.
The stock sell-off pushed out of the money a number of call options, sapping their appeal to investors. More than 431,000 put and call options changed hands so far, almost triple the 20-day average of 147,076.
SoundHound shares have been languishing below $3 until Feb. 15, 2024, when Nvidia reported its stake in the company. That sent the shares climbing 66.7%, putting the stock in many retail investors' radar and helping propel it to a record-high of $24.98 on Dec. 26.
At that time, Cantor Fitzgerald analyst Brett Knoblauch wrote in a note that the rally on Nvidia's stake was overdone, given that the chip giant's stake in SoundHound dates back to 2017, when the company raised $75 million from investors including Nvidia and Samsung, according to a Bloomberg report last year.
Nvidia's disclosure last year was probably triggered by the fact that the assets held by its investment unit has already exceeded the $100 million threshold set by the SEC that requires the 13F filings, the report said.
The stock of the unprofitable company that has been burning cash is finally giving back some of its Nvidia-fueled rally. While analysts expect SoundHound to report a 97.5% surge in revenue for the three-months ended Dec. 31, that's not enough to swing the company to a profit in that period, according to estimates compiled by Bloomberg.
Analysts, on average, anticipate an adjusted loss of 9 cents a share, consensus showed. SoundHound is due to report its quarterly financial reports on Feb. 27, after the market closes.
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- NotWizard·2025-02-17Quite interesting…, whats your thought initially ?LikeReport