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SoundHound AI shares tumble following Q4 miss

SoundHound AI (SOUN) stock slides amid an earnings miss, reporting $17.1 million of revenue and slightly wider than expected losses of $0.07 per share. Nvidia (NVDA) now owns a stake in the artificial intelligence company.

Yahoo Finance breaks down SoundHound AI's stock performance during recent AI trends

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Luke Carberry Mogan.

Video transcript

- Well, let's talk about SoundHound earnings. That company that has been very closely watched by well, users of Yahoo Finance, among others. The shares down 12% after the company's loss came out wider than estimated at $0.07 a share. The average analyst estimate was for a loss of $0.06 a share, although it was a narrowing loss year over year.

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As you can see their revenue also came in below estimates at $17.1 million, $17.75 was what analysts had anticipated, although that is an increase of 80% year over year in that revenue figure. SoundHound is one of these companies, and by the way, NVIDIA also had disclosed an investment in it. It's one of these companies that has been caught up in the AI enthusiasm that we've seen in this market.

We just talked to Keyvan Mohajer, the CEO recently here with us in the studio, Josh, and talked about the voice recognition advances that the company is working on based on generative AI.

- And of course, expectations for this one were just through the roof. I mean, heading into this report, that stock was up about 240% just this year, right. And a lot of that, of course, because a lot of that recent move we can chalk up to what you talked about in NVIDIA, right. Disclosing that investment in the company, and, and of course I think a lot of investors saw it as a vote of confidence in the company and for good reason.

CEO saying here our pace and agility amid this AI revolution, he is noting has put us ahead of the field when it comes to delivering real commercial value. They do have competition here, and we asked the CEO about that, he just basically said he thinks they do it better. But at least initially here some disappointment in the after hours.

- Yeah, and one more thing to mention, Bill Smead of Smead Capital Management when he came on talked a little bit about this. This is now a $1.8 billion company that just reported a little over $17 million in quarterly revenue. So there is a disconnect from the traditional financial modeling on Wall Street.

- Yes, he had, he had strong feelings about that one as I recall. Yeah.