SoundHound's AI-Driven Shares Drop 1.69 as Trading Volume Plummets 21.67 to 203rd Rank

On August 21, 2025, SoundHound (SOUN) reported a daily trading volume of $420 million, representing a 21.67% decline compared to the previous day. The stock closed down 1.69%, ranking 203rd in trading activity among listed equities. Recent market activity reflects shifting investor sentiment toward AI-driven technology firms amid broader sector consolidation.

Analysts attribute the volume contraction to strategic portfolio rebalancing by institutional investors. The decline follows a period of elevated volatility linked to ongoing regulatory scrutiny of generative AI applications. While the company continues to expand its AI-powered search capabilities, market participants remain cautious about near-term monetization timelines.

Backtesting of a high-volume trading strategy from 2022 to 2025 revealed a 6.98% compound annual growth rate. However, the approach experienced a 15.59% maximum drawdown during the period, with particularly pronounced losses observed in mid-2023. The results underscore the inherent risks of volume-based trading strategies in AI-related equities, emphasizing the need for diversified risk management approaches.