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SoundHound AI's stock fell 6.8% despite beating earnings and revenue forecasts, due to large losses and negative margins.
SoundHound AI (SOUN) shares dropped 6.8% on Friday, closing at $8.46, after reaching a low of $8.33, with trading volume up 7% above average.
The company reported fourth-quarter earnings of a $0.03 loss per share, beating estimates by $0.06, and revenue of $42.05 million, surpassing forecasts by $1.57 million, with year-over-year growth of 67.6%.
Despite strong revenue gains, the company posted a negative net margin of 211.16% and a negative return on equity of 93.64%.
Analysts expect a full-year loss of $0.38 per share.
The stock has a market cap of $3.55 billion, a negative P/E ratio of -10.07, and a beta of 2.65.
A consensus "Moderate Buy" rating and a $16.07 price target remain, though some firms have issued mixed or bearish views.
Las acciones de SoundHound AI cayeron un 6.8% a pesar de superar las previsiones de ganancias e ingresos, debido a grandes pérdidas y márgenes negativos.