Why SoundHound AI Stock Skyrocketed 85% in November
Shares of voice assistant technology company SoundHound AI (NASDAQ: SOUN) skyrocketed 85.1% during November, according to data provided by S&P Global Market Intelligence. The company did report financial results for the third quarter of 2024 during the month. But oddly enough, this didn't serve as a catalyst to send the stock higher. To the contrary, the stock actually dropped following its Q3 report.
In Q3, SoundHound's revenue soared by 89% year over year to a record $25 million. But acquisitions hit the company's profit margins. Its gross margin dropped to 49% compared to 73% in the prior-year period. Therefore, while revenue was skyrocketing, its gross profit was up a less impressive 26%. And its net loss actually widened.
Immediately following the report, SoundHound stock dropped. But it was up sharply many of the other days that the market was open, as the chart below shows.
Source Fool.com
