On July 27, 2023, the market analyst and investment firm Culper Research released a report on SoundHound. The report alleged, in part, that SoundHound is a “flailing AI wannabe claiming to have revolutionary technology, a growing restaurant business, and a massive backlog of contracts. In our view, SoundHound has misled investors on each of these items: the Company’s AI simply doesn’t work – it relies on call centers staffed by humans; SoundHound’s foray into restaurants is a disaster; the Company’s backlog figures are bogus.”
On this news, the price of SoundHound common stock declined by $0.22 per share, or 8.97%, to close at $2.23 on July 27, 2023.