Don't Buy SoundHound AI Stock Before You Read This Warning

The promise of artificial intelligence (AI) has not just fueled share price gains for the "Magnificent Seven" stocks, but also for a group of smaller, pure-play AI stocks. Some of these have generated excellent returns in a short time for investors -- among them, conversational AI company SoundHound AI (NASDAQ: SOUN). Its share price is up by around 45% from where it traded when it went public through a reverse merger with a special purpose acquisition company (SPAC) in August 2022.That's actually well behind the 70% total return that the broad S&P 500 index delivered over that period. However, shareholders who bought the stock between late 2022 and early 2024 are sitting on much higher returns. It's up by about 1,000% from where it sat three years ago, in December 2022.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool