Posted 3/25/2024, 3:10:39 PM
SoundHound AI Stock Plunges as Analyst Downgrades on Growth Concerns, Insider Sales
- SoundHound AI stock has pulled back 43% from 2022 highs amid short seller report questioning business model and valuation
- Analyst Brett Knoblauch believes current valuation is difficult to justify given early stage of business and decelerating growth
- Revenue growth in 2024 expected to be only ~50% organically, boosted by acquisition, indicating slowing momentum
- Recent insider selling suggests stock price run-up has become overextended
- Knoblauch downgrades rating from Buy to Sell with $4.90 price target, seeing 15% downside risk