SoundHound fell over eight points, and BigBear.ai also fell five or six points. Both small-cap AI stocks got hammered together today 🙈. The profit path for this type of stock hasn't been proven yet; they rise fast during rebounds and don't hesitate to give back gains during pullbacks. Essentially, they're just swinging up and down with AI sentiment and risk appetite. When the broader market contracts risk appetite, the first to be sold are these small-cap stocks with strong narratives but earnings that can't support their valuations.
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