SoundHound AI (NASDAQ:SOUN) Shares rose over the past week of trading. The company’s share price rose by 61.2% from the market close last week, according to data from Standard & Poor’s Global Market Intelligence.
SoundHound AI stock posted big gains this week after the company hosted an investor presentation and announced that a new restaurant partner had rolled out its software. The company’s share price also rose thanks to economic, political and political developments Stock meme batch.
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Nitesh Sharan, CFO of SoundHound AI, participated in the UBS Global Technology and AI Conference on December 4. During his presentation at the conference, Sharan presented and discussed the company’s conversational AI (Amnesty International) Programming.
The next day, SoundHound announced that Torchy’s Tacos had adopted the company’s AI ordering and customer service technologies. The software has been rolled out to 130 Torchy’s Tacos locations and has the capacity to handle 100% of incoming calls and take customer orders. While bringing its software to 130 new restaurant locations may not be a big deal in the grand scheme of things, investors took it as an indication that the software could see much broader adoption — and SoundHound stock skyrocketed on the news.
While there was some big business-related news that pushed SoundHound AI’s valuation higher over the past week, the stock likely also benefited from meme stock momentum. Investors have become widely more risk-tolerant recently, and some are looking to make huge gains in short-term trades. In contrast, meme stock trading is back in fashion.
In addition to the meme stock momentum, SoundHound AI and other AI stocks got a boost from Donald Trump’s announcement that he plans to appoint venture capitalist David Sachs as AI and cryptocurrency chief under his new administration. This news seems to support the idea that the incoming Trump administration will take steps to boost the development of the artificial intelligence industry.
Macroeconomic news has also been favorable for growth stocks over the past week. Jobs numbers for November showed improvement in the labor market, and the Federal Reserve is expected to cut interest rates later this month.
On the heels of last week’s gains, SoundHound AI stock is up 608% in trading this year. The gains mean the company is now worth about 68 times this year’s expected sales. So, while it’s possible that winning new contracts and partnerships could bring huge gains to a company’s stock price, investors must understand that the stock’s incredible rise has pushed its risk level much higher.
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Keith Noonan He has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has Disclosure policy.
Why SoundHound AI Stock Soared This Week Originally published by The Motley Fool