If a shift in the mood of any promotion is detected, the investors of the calibration investors rely on their ideas, as a rule, considers only one side of the equation. This side is who buy shares regarding any large investors or other institutional buyers. There are power in numbers and knowing that the so -called “Smart money“I did enough homework to justify the presence of a position in the basic action.
Soundhound AI Today
As of 2/2/2025 21:00
- 52-week range
- $ 3.82
▼
$ 24.98
- Value is valuable
- $ 10.50
However, the other side of the equation is barely taken into account. This means that who sells shares and how many of them are currently held in short positions. When the scale leans too much to the short -term side, any hint of potential potential or acute movements can cause what is known as a short compression, a concept that will be slightly explained.
Before understanding the consequences and Short compression effectsInvestors should know that shares Soundhound Ai Inc. NASDAQ: SOUN are a vivid example and potential goal of short compression in the creation. Being part of the technological sector and indicate excitement in relation to the development and adoption of artificial intelligence, makes this action a potential winner in the coming months and quarters.
What can mean short compression
Closing the action It means that the market participant must borrow someone’s promotion in order to sell them in the open market. Since a person does not own the action itself, he is called “short” shares. A short seller will earn money if the price of shares decreases, which will allow it to purchase it at a lower price and resell it at the initial price, thereby booking the profit.
However, when the price of shares has risen, a short seller must buy and return the shares at the initial price, having suffered a loss. Simply put, the closure of a short position requires the seller to buy promotions in order to align his book.
In this sense, regardless of intention, Promotions will see additional purchase pressure When short sellers should close.
This is why the detection of shares with High short interest It may be a fantastic strategy, since a sharp transition up can cause a mass purchase when all these short sellers must leave the scene and reduce their losses.
Now, given that Soundhound reported up to 31.5% of its shares, which are held in short positions, it sets a script in which you can easily cause a short compression, rising up when all traders are looking for.
How much up can Soundhound deliver?
Given that the action is already Deliveed 10.4% rally Over the past month, surpassing the S&P 500 index by more than 6% during this period, investors may ask if the company has an additional place to achieve a higher ceiling moving forward.
Considering that the 52-week maximum shares amounted to approximately $ 24 per share, not so far from reality that this action can double its price under correct conditions, and some on Wall Street still believe that they can. For example, Scott tank from HC Wainwright confirmed his purchase rating For Soundhound Stock since mid -May 2025.
Soundhound AI Promotion Forecast Today
$ 10.50
5.32% growthModerate purchase
Based on 8 analysts ratings
| The current price | $ 9.97 |
|---|---|
| High forecast | $ 18.00 |
| Average forecast | $ 10.50 |
| Low forecast | $ 7.00 |
Soundhound Ai Ai Denfomast details
Not only does this analyst still take into account Soundhound a BuyBut he was also ready to estimate it at the level of up to 18 dollars per share in order to call on 78% of growth, where the shares fell today.
Now those who rightfully think that the cheap action for, for a reason, may be borne in mind that from its smaller size and popularity in this sector this name may not have negative reasons to miss the rally to restore the liberation day.
The opposite may be true, given that, despite the low price of the shares, the total market Still ready to overpay for the balance of the company and Future financial potential.
Investors can see this topic in the game, just finding how Soundhound Stock Massive 202X Review of the price for the book (p/b)Field
This assessment requires a significant bonus to the rest of the average 6.8 -fold assessment of the computer sector. Before the old school investors say that this makes the action unattractive and filled with a lack, they must remember that the market always has a fundamental reason for overpayment for shares, which, in his opinion, may surpass in the near future.
I think about it 78% growth potential Going out of Wall Street and the amount of short interest, which, perhaps, must be washed if this assessment is provided correct, in the world it makes sense that the market does not notice what may seem “expensive” in exchange for reaching profitability above average.
Before considering AI Soundhound, you will want to hear it.
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