What Happened?
Shares of voice AI technology company SoundHound AI (NASDAQ: SOUN) jumped 7.6% in the morning session after the company announced a partnership with Red Lobster to roll out an AI-powered phone ordering agent across all the restaurant's locations.
The voice AI technology was designed to handle multiple calls at once, take orders, and answer common guest questions about restaurant hours and menu items. Orders taken by the AI agent were sent directly to Red Lobster's point-of-sale system, which helped reduce the workload for the in-store teams and streamline the takeout process.
The collaboration with a large, well-known brand like Red Lobster was seen as a significant step for SoundHound, highlighting the growing demand for its voice ordering services in the restaurant industry.
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What Is The Market Telling Us
SoundHound AI’s shares are extremely volatile and have had 93 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was about 22 hours ago when the stock gained 7.5% as the company agreed to acquire Interactions Corporation, an AI-driven customer service firm, in a deal valued at up to $85 million.
This move was aimed at broadening SoundHound's enterprise offerings and adding a diverse client base. The positive momentum was also fueled by a broader rally in the tech sector, after Nvidia announced a major partnership with OpenAI to build out data centers, boosting sentiment across AI-related stocks. Investor optimism was further supported by SoundHound's strong performance metrics.
The company's revenue had surged 217% year over year in the second quarter, and its billings, a key indicator of customer demand, showed an average year-on-year growth of 202% over the last four quarters. This combination of strategic expansion and powerful underlying growth metrics painted a bullish picture for investors.
SoundHound AI is down 9.8% since the beginning of the year, and at $18.18 per share, it is trading 25% below its 52-week high of $24.23 from December 2024. Investors who bought $1,000 worth of SoundHound AI’s shares at the IPO in April 2022 would now be looking at an investment worth $2,424.
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