SoundHound AI (NASDAQ:SOUN) stock is soaring 30% in early trading. The California-based company “develops voice-enabled artificial intelligence (AI) and conversational intelligence technology solutions.” More specifically, SoundHound provides “custom voice assistants” to companies.
Some investors are reportedly interested in seeing whether SOUN stock’s redemptions are high. In the past, SPAC stocks with high redemption levels have been extremely volatile, taking investors on “a wild ride” that included very large swings in both directions.
Names that had low floats and became Reddit darlings have been especially likely to soar.
What Is Going on With SOUN Stock?
SoundHound AI began trading on the Nasdaq exchange on April 28 after merging with a SPAC called Archimedes Tech. SoundHound obtained $113 million of proceeds from a private investment in public equity (PIPE) created by Archimedes.
Among SoundHound’s investors are Oracle (NYSE:ORCL), Tencent (OTCMKTS:TCEHY), Daimler, Hyundai (OTCMKTS:HYMTF) and Samsung. Its customers include Pandora, Hyundai, Snap (NYSE:SNAP), Netflix (NASDAQ:NFLX), Qualcomm (NASDAQ:QCOM), Honda (NYSE:HMC), Mastercard (NYSE:MA) and Deutsche Telekom.
The company’s “vision” is to “make computers better than humans” when it comes to speaking. Its founder and CEO Keyvan Mohajer has a doctoral degree in electrical engineering from Stanford University.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.