SoundHound AI Stock Decline Reveals Options Opportunity Amid Sector Volatility
SoundHound AI's Q3 earnings revealed a paradox: record revenue growth overshadowed by deepening losses and automotive segment struggles. The company posted $42.05 million in sales, surpassing estimates, while losses widened to 27 cents per share against 9-cent expectations. Year-to-date revenue surged 127% to $114 million, demonstrating scaling potential in enterprise AI adoption.
Market skepticism stems from exposure to tariff-sensitive automotive clients and broader tech valuation concerns. The 27% single-day drop in SOUN shares reflects cooling sentiment toward AI stocks after their 2023 rally. Yet derivatives traders see value - put options now price in lower volatility than calls, creating rare asymmetry for a stock still up 170% year-to-date.
