SoundHound's stock has plummeted 66% since its peak, with shorts profiting from its decline. However, the author suggests that the potential for explosive growth in the voice AI space may lead to significant market recoveries. Despite the current financial difficulties, the upcoming developments in conversational AI could present lucrative opportunities, making it risky for short sellers to maintain their positions. The article underscores that even in challenging circumstances, SoundHound could rebound sharply due to upcoming advancements and contracts.
After a 66% drop, shorting SoundHound looks to be a dangerously risky proposition. For a still-promising voice AI company like SoundHound, which is still capable of explosive bursts of revenue growth as it continues winning new contracts while expanding the capabilities of its core offerings in the early innings of the era of AI agents.
The potential tailwinds in the AI agent era are too great. I wouldn't dare bet against the name, even at today's still-hefty valuation.
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