Posted 4/10/2024, 7:31:00 PM
SoundHound Stock Falls as High Inflation and Rates Threaten Tech Spending
- Inflation rose more than expected in March, making the Fed less likely to cut interest rates this year
- Higher interest rates typically hurt high-growth, unprofitable stocks like SoundHound AI
- SoundHound stock fell 7% in line with the broader market sell-off
- SoundHound is still a small, unprofitable company relying on new customers testing its technology
- With high inflation and interest rates, companies may cut back on new tech spending, putting more pressure on stocks like SoundHound