SoundHound AI Inc. (SOUN) experienced a significant 7.63% plummet in its stock price during the pre-market trading session on Monday. This sharp decline is believed to be driven by investor concerns over the company's ownership structure and future growth prospects.
According to recent analyses, a staggering 60% of SoundHound AI's ownership is held by individual investors, while institutional investors account for only 30%. This high concentration of individual ownership has raised questions about the company's ability to execute key strategic decisions effectively and efficiently.
Moreover, SoundHound AI's financial performance has added to investor worries. The company has yet to achieve profitability and has shown relatively modest revenue growth compared to other prominent players in the artificial intelligence (AI) space. This has cast doubts on the company's path to profitability and its ability to capitalize on the potential of its voice AI technology.