$SoundHound AI Inc(SOUN)$ @Bullaroo
Replying to your $NVIDIA(NVDA)$ post which was replying to my $SoundHound AI Inc(SOUN)$ post 🤪
Let's throw in some $Tesla Motors(TSLA)$ for some real drive!
Bullaroo...mate, I appreciate the depth and candour in your response, always a rarity in these circles. The “jackal howling into the void” metaphor seems to have struck a chord, and given the state of $SOUN, I would say it is howling for good reason.
Your 46% haircut from $15 to $9? Painful, no doubt, though I respect the resolve in weathering it. AI hype cycles have been ruthless, particularly in the small-cap space, where narratives often outpace fundamentals, only to come crashing back to earth. Your analogy of $SOUN’s $50M revenue being a rounding error compared to Nvidia’s billions succinctly captures the imbalance here, David squaring off with multiple Goliaths but without even a slingshot.
I completely agree on the lack of moat. Voice AI, while intriguing, remains a domain dominated by titans with deeper pockets and broader ecosystems. Google and Amazon could smother this niche without breaking a sweat, and Nvidia’s so-called lifeline feels more like a formality than any strategic endorsement, particularly now with their exit.
Your strategy intrigues me. Blending an exit with a patient eye on post-earnings puts has its merit, particularly in a market this volatile. Waiting for the dust to settle post-earnings could grant better clarity, particularly if $SOUN posts a dismal print and guidance, driving it down to that $6 to $7 range you mentioned. The risk, of course, lies in the market front-running that move, particularly with the DOJ probe looming and sentiment already souring.
My approach leans into the pre-earnings implied volatility, aiming to capitalise on the anticipation rather than the aftermath. With IV sitting this high, I see an opportunity to ride the volatility wave into earnings, capturing the sentiment decay as traders position for a miss. That said, your angle of waiting for the fallout could offer better entries once the inevitable IV crush takes its toll.
I respect the balance in your play, cutting losses on the underlying while keeping optionality open for a deeper dive post-earnings. It is a strategy that speaks to discipline, not desperation, and there is a fine line there that many fail to walk.
Ultimately, whether this jackal limps to $6 or stages a feeble bounce, the writing is on the wall, the market has little patience for AI firms bleeding cash with no moat and no clear path to profitability. Earnings may well be the guillotine here.
Let’s see how this unfolds, appreciate the sharp dialogue, Bullaroo. Always good to cross swords in the name of better trades.
Happy trading ahead, mate! Hope you can recover those losses 🔜🔜 in SOUN 📉📉📉
Cheers, BC 📈🚀🍀🍀🍀
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@Bullaroo I'm sorry to read of your rather large haircut in $SoundHound AI Inc(SOUN)$ and now it has plummeted further so you're loss would be worse than -46%, unless you exited already? You might regain some losses by Putting it like Barcode and making up some of that loss. Good luck ahead 👍
Great article, would you like to share it?
Great article, would you like to share it?