BUZZ-SoundHound AI drops on $250 mln stock sale plans

Reuters
01-28
BUZZ-SoundHound AI drops on $250 mln stock sale plans

** Shares of SoundHound AI SOUN.O down 4.6% at $13.42 before the bell after artificial intelligence voice provider files up to $500 mln mixed shelf

** As part of the shelf, Santa Clara, California-based firm may sell up to $250 mln of shares in ATM (at-the-market) program, per the filing

** Co says on Jan 27, it entered into equity sales agreement with Cantor Fitzgerald, Guggenheim, Oppenheimer, Wedbush, Ladenburg and Northland Secs for the ATM

** Says intends to use net proceeds from sales for general purposes, including investments or acquisitions, though adds it currently has no specific acquisition contemplated

** Co, which counts AI poster child Nvidia NVDA.O as an investor, had ~360.8 mln Class A shares outstanding as of Dec 31, according to the filing

** SOUN shares on Mon closed down 11.2% at $14.07 as China's DeepSeek AI model hammered tech stocks, including record market-cap loss for NVDA

** Through Mon, SOUN shares off 29% YTD. Stock was trading just below $2 a year ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))

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