Why Is SoundHound AI Stock Tumbling Today?

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) are facing selling pressure on Thursday after the company announced a CFO transition. SoundHound AI shares are sliding. What’s weighing on SOUN shares? CFO To Depart Next Month SoundHound announced that CFO Nitesh Sharan is leaving his role on April 3 for a leadership position at a company in the quantum computing space. Co-founder and chief product officer James Hom, who served as the company’s first CFO from its founding in 2005, will serve as interim CFO as the company searches for a permanent replacement. In reaction to the news, analysts at DA Davidson maintained a Buy rating and $14 price target on the stock. Analyst Gil Luria said that one of SoundHound AI’s major risks is that 30% of its revenue comes from one customer, and that a large portion of its overall business comes from royalty-based revenues, which are non-recurring. However, the analyst believes the company is set up for continued success. “Nitesh leaving as CFO is certainly disappointing but he helped set up SOUN for continued success, and we do not expect a significant change in strategy for SOUN moving forward,” the analyst wrote in a note. SOUN Stock Dips Below Key Averages SOUN is trading 16% below its 20-day SMA and 38% below its 100-day SMA, showing the stock is still below key trend gauges on both the short and intermediate timeframes. Shares are down 31.47% over the past 12 months and are positioned closer to their 52-week low ($6.52) than their 52-week high ($22.17). The RSI is at 38.86, which sits in neutral territory but leans weak as it remains below the 50 level. Meanwhile, MACD is at -0.3505 and below its signal line at -0.3425, keeping bearish momentum pressure in place. The combination of RSI in the 30–50 range and bearish MACD suggests mixed momentum. Key Resistance: $8.00 Key Support: $6.50 SOUN Shares Fall In Early Trading SOUN Stock Price Activity: SoundHound AI shares were down 8.53% at $6.76 at the time of publication on Thursday, according to Benzinga Pro data. Image: Shutterstock.com