SoundHound AI
They’re on the move again! SoundHound (SOUN) shares are doing exactly what was expected after yesterday’s breakthrough $8, as it rallies another 5% this morning to challenge $10.
Let’s take a moment to remember why this company made it on everyone’s radar…
SoundHound is a voice recognition company that had originally worked with auto companies to provide software for their cars. As we move into the “services” phase of the AI Revolution, applications that work with AI technology will be at the core of AI services.
Enter Nvidia (NVDA). Nvidia made an investment in SoundHound more than a month ago, and it’s now featuring the company at their GPU Technology Conference next Monday.
This newly discovered AI stock is making its way out of the $10 universe, which always has perks and benefits. Among them, the availability of institutional cash that may otherwise be limited in their investing in the stock due to prospectus or oversight restrictions.
Here’s what I’m expecting to see… We’ll continue to see some round-numbered resistance at $10, especially with the added volatility in the broader market.
After a break above this price SOUN shares should make a beeline straight to $12 followed by a short spate of profit-taking. From there, a target of $15 appears reasonable for this newly discovered AI stock.
Marathon Digital Holdings
Shares of Marathon Digital (MARA) are dropping another 8% today, despite the surge that we’ve seen in Bitcoin.
There’s a relatively simple reason why.
Shares of the Bitcoin miner have dropped 47% in the month of March due to a confluence of events.
First, the company missed their earnings number on February 28, setting the stage for a pullback in shares. But the story is bigger.
For the last five years or so, Marathon Digital shares have been seen as a proxy for Bitcoin and the cryptocurrency market. In other words, the stock was a substitute for the cryptocurrency market, which was decidedly harder to trade than a stock.
The recent Bitcoin ETF offerings – like Ark Investment’s ARK 21Shares Bitcoin ETF (ARKB) have become a better proxy in that they are tied directly to the price of Bitcoin and don’t involve the need to invest in a company’s management.
MARA shares are hovering above $17.50, which is the price that I consider the line in the sand. A break below $17.50 is likely to cause sellers to increase overhead pressure, resulting in a target of $10 for Marathon Digital.
Adobe
Adobe (ADBE) will all but close out the earnings season this afternoon as they report results after the close.
Most investors don’t think of Adobe as a generative AI leader, but that’s exactly where the company has been heading.
Adobe’s Firefly technology has been used in the budding AI service industry in areas like retail, generating original, on-the-fly images for retail apparel company’s websites as a simple example. Watch for this technology as well as the company’s cloud services to be the focus of the report.
Shares are trading near break-even for the year after the company guided their revenue forecast for the current quarter lower in December.
The stock sits just below its 50-day moving average ($575) and above its 200-day ($550), which means this stock is likely to make a technical squeeze play after the report.
For my money, I wait until after the report, then play the continuation of the trend with an upside target of $650 and downside of $500.
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About the Author
Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.