Short Seller Capybara Targets SoundHound AI, Questions Core Business Claims
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Capybara Research issued a short report on SoundHound AI with a $1 price target, claiming it is a "failing company peddling lies and deception".
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Capybara alleges SoundHound misleads on its AI capabilities, saying its product uses basic speech recognition, not advanced AI like it claims.
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The report questions SoundHound's business health, claiming it has lost major clients like Mercedes and used one-time payments to paper over deteriorating fundamentals.
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SoundHound's 80% customer retention rate statistic from 2022 is missing from its 2023 filing, signaling issues retaining clients.
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Capybara recommends selling SoundHound stock, contrasting with Wall Street's consensus Strong Buy rating, although some analysts see shares as overvalued.