"Maybe it's paying off a mortgage, funding a kid's college, or diversifying a portfolio heavy on one name. Lynch knew: executives aren't oracles; they're people with bills. In this case, the trades were pre-planned, falling under a December 2024 Rule 10b5-1 plan, which are SEC-approved transactions that lets insiders schedule sales in advance to avoid insider-trading accusations. These were essentially mechanical trades, not malicious."
"SoundHound AI has never posted an annual profit since its founding in 2005. In fact, losses are widening . In the second quarter, GAAP net losses hit $74.7 million, up from $22.3 million in Q1 and much higher than a year ago. Although part of the spike ties to a $31 million non-cash hit from its Amelia acquisition, core operations are bleeding, too."
SoundHound AI shares fell about 8.5% after CFO Nitesh Sharan sold over 60,000 shares, roughly $1.28 million, with about half from exercising options at $7.514 per share. The trades were part of a December 2024 Rule 10b5-1 plan, representing pre-planned, automated sales rather than insider malfeasance. Despite a 217% year-over-year revenue surge to $42.7 million driven by automotive and quick-service-restaurant partnerships, SoundHound remains unprofitable since 2005, with GAAP net losses reaching $74.7 million in Q2. Part of the loss reflected a $31 million non-cash Amelia acquisition charge, while core operations continue to burn cash.
Read at 24/7 Wall St.
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