SoundHound AI Inc (SOUN) plunged 6.78% in the pre-market trading session on Monday. The pre-market decline comes amidst concerns over the company's ownership structure and future growth prospects.
According to a recent analysis, individual investors account for 60% of SoundHound AI's ownership, while institutions hold around 30%. This high proportion of individual ownership has raised questions about the company's ability to execute key strategic decisions effectively.
Moreover, SoundHound AI's financials reveal a lack of profitability and relatively modest revenue growth compared to other AI companies like Palantir Technologies. While SoundHound AI's voice AI technology has potential, its path to profitability remains uncertain, further fueling investor concerns.
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