Factors Behind SoundHound AI Stock’s 39% Decline Last Month

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**SoundHound AI (NASDAQ: SOUN) shares dropped 39.4% in December 2025**, even after announcing a significant partnership with OpenTable, adding over 60,000 restaurant locations to its services. The decline reflects a broader market shift away from unprofitable growth stocks, with the company leveraging $269 million in debt-free cash reserves amid its ongoing hypergrowth strategy.

In November 2025, SoundHound AI reported a **68% year-over-year revenue growth** for Q3, yet Wall Street showed little interest in its growth trajectory as trading volume fell by **48%** in three months. The stock is currently trading **50% below its 52-week peak**, suggesting a move from a meme stock status to a more stable growth outlook as investor sentiment shifts.
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