Why soun is down

SoundHound AI's stock decline can be attributed to a combination of internal company issues and external market factors:

1. **Company-Specific Issues**:
- **Misled Investors**: SoundHound has been accused of misleading investors about the quality of its AI, which is subpar. This has eroded investor confidence.
- **Loss of Big Customers**: The company has hidden the loss of some of its biggest customers, which has raised concerns among investors.
- **Internal Control Weaknesses**: SoundHound admitted to material weaknesses in its internal control over financial reporting, indicating potential financial reporting issues.
- **Fresh Capital Raise**: The announcement of a $150 million equity sale has led to dilution concerns among shareholders.
2. **Market and Economic Factors**:
- **Valuation Concerns**: The stock's price was high relative to sales, which may have been unsustainable given the lack of profitability.
- **AI Buzz Fading**: The excitement over AI stocks, which fueled SoundHound's stock price increase, appears to be waning.
- **Regulatory and Economic Uncertainty**: The software market faces challenges such as heightened macroeconomic uncertainty and the potential impact of regulations.

In conclusion, SoundHound AI's stock decline is a result of a combination of company-specific issues and broader market trends. The company's challenges with internal control, loss of big customers, and misleading investors have likely contributed significantly to the negative sentiment. Additionally, the overall market conditions, including the fading AI hype and economic uncertainty, have created a difficult environment for the stock to thrive.