Stock Market Today, April 21: SoundHound AI Falls After Announcing All-Stock LivePerson Acquisition
SoundHound AI (NASDAQ:SOUN), a provider of voice AI solutions for the automotive, TV, IoT, and customer service industries, closed at $7.85, down 5.65%. Shares declined after news of an all-stock LivePerson acquisition. Investors will be watching the shareholder dilution from the deal and for execution on omnichannel AI growth targets. Trading volume reached 54.2 million shares, about 107% above its three-month average of 26.2 million shares. SoundHound AI IPO'd in 2022 and has grown 5% since going public.
How the markets moved today
The S&P 500 slipped 0.65% to 7,063, while the Nasdaq Composite fell 0.59% to finish at 24,260. Among software (application) peers, C3.ai closed at $9.20 (-1.97%) and BigBear.ai ended at $3.79 (-1.30%), reflecting cautious sentiment around AI software names.
What this means for investors
SoundHound AI made a big move today, acquiring conversational AI peer LivePerson and its Conversational Cloud for roughly $250 million, including LivePerson’s debt balance. The complementary deal forms a powerhouse in the conversational AI niche, serving 25 of the Fortune 100 and 12 of the top 15 global banks.
Management believes the combined company will generate between $350 million and $400 million in revenue in 2027, and that cross-selling could push this figure to $500 million as the two firms integrate. While the all-equity deal will be dilutive to shareholders, SOUN’s balance sheet is projected to remain debt-free. Projected to more than double its sales in 2027, SOUND remains an intriguing stock, especially if it keeps advancing toward profitability.
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Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends SoundHound AI. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
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