Shares of SoundHound shot more than 20% higher on Friday to close the week with gains of 13%.
SoundHound specializes in developing voice AI technology and conversational intelligence models. The company’s products enable natural language understanding (NLU) and voice recognition for various applications across industries including the automotive and restaurants.
The stock hit fresh 52-week highs last week as shares touched the $15 price level. This followed a fast and aggressive 50% rally in less than a week after SoundHound stock broke above the psychologically significant $10 price.
That rally led to an extremely overbought situation in the stock as heavy volume and surging prices registered the highest reading of its RSI since February 2024.
In February, shares saw a similar rally after NVIDIA disclosed a position in SoundHound stock. Shares reached $10 before retracing to their 2024 lows under $3.50.
Last week’s overbought reading resulted in a fast 20% correction. That healthy correction has now allowed the stock to continue its climb towards $20.
While shares of SoundHound remain highly speculative – and even referred to as a “Meme” stock by some – the stock has remained in its long-term bullish trading pattern since February 2024.
The company’s latest earnings report showed revenue growth of 88% while earnings per share results beat Wall Street analysts by $0.01.
Though remaining unprofitable Wall Street analysts have taken more interest in the stock with multiple upgrades in the last six months helping improve investor sentiment towards this volatile name.
SoundHound shares maintain a Bullish outlook with a price target of $20.
