{"id":5922,"date":"2026-10-10T15:15:17","date_gmt":"2026-10-10T15:15:17","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5922"},"modified":"2026-10-10T15:15:17","modified_gmt":"2026-10-10T15:15:17","slug":"soundhound-stock-breaks-key-support-as-short-interest-surges-is-a-squeeze-coming","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5922","title":{"rendered":"SoundHound stock breaks key support as short interest surges: Is a squeeze coming?"},"content":{"rendered":"
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SoundHound stock has plunged to its lowest level since November 2024 as investors continue betting against the voice AI company. It slumped to a low of $5.38 on Friday, down by nearly 80% from its all-time high, a sign that Nvidia\u2019s investment has flopped. <\/p>\n

Investors are aggressively betting against SoundHound stock<\/h2>\n

SOUN stock has plunged since October last year, when it peaked at $22 after Nvidia took a stake in the company. Despite its strong revenue growth, investors have continued to bet against the company, with the short interest rising to 40%. This makes it one of the most heavily shorted companies in the US. <\/p>\n

Short interest is a figure that looks at the number of shares of a stock that investors have sold short but have not yet covered or closed out. It is usually a measure of how many traders are betting that a stock will fall. A high figure is a sign that many people expect it to drop over time. <\/p>\n

It can also be a sign that a stock will experience a short squeeze, a situation where it rebounds, forcing short sellers to buy shares to close their positions. A good example of a short squeeze was GameStop, which surged in early 2021. OpenDoor also experienced a short squeeze last year.<\/p>\n

SoundHound\u2019s crash and the rising short interest is happening even as its revenue continue growing.<\/a> Its last earnings report showed that revenue jumped by 45% to $61.9 million as more companies continued to embrace its technology. It signed a 7-figure deal with a healthcare system with over 30,000 employees. It also renewed its contracts with top companies like Rakuten Securities and Hyundai.<\/p>\n

SoundHound also continued to narrow its losses during the quarter. Its net loss came in at $42.8 million from $74 million a year earlier. The management decided to hike its targets for the year. It now expects that its annual revenue will be between $230 million and $260 million. <\/p>\n

Analysts expect that its revenue will be $251 million, followed by $390 million next year. The real figures will be higher than these because of its recent LivePerson acquisition in a $43 million deal.<\/p>\n

SOUN stock price technical analysis<\/h2>\n
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SoundHound stock chart | Source: TradingView<\/em><\/p>\n

The weekly chart shows that the SoundHound stock has been in a strong sell-off since last year. It has now dropped below the important support level of $5.80, its lowest level in March and August, invalidating the double-bottom pattern. The double-bottom is one of the most common bullish reversal patterns in technical analysis. <\/p>\n

The stock continues falling below the 50-week Exponential Moving Average and the descending trendline that connects the highest swing since January. Its double-bottom pattern was part of the descending triangle pattern. <\/p>\n

Therefore, the path of the least resistance is downwards, with the next key target to watch being at $4. The risk, however, is that it may experience a short squeeze, especially as its earnings nears.<\/p>\n

The post SoundHound stock breaks key support as short interest surges: Is a squeeze coming?<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

SoundHound stock has plunged to its lowest level since November 2024 as investors continue betting against the voice AI company. It slumped to a low of $5.38 on Friday, down by nearly 80% from its all-time high, a sign that Nvidia\u2019s investment has flopped. Investors are aggressively betting against SoundHound stockSOUN stock has plunged since October…<\/p>\n","protected":false},"author":1,"featured_media":5923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5922","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5922","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5922"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5922\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5923"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5922"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}