Capybara says ‘failing company’ SoundHound worth ‘$1 per share or less’

In a recently published report titled “Lies, Damned Lies, and Cheeseburger ‘AI’,” Capybara Research says it is short SoundHound (SOUN), calling it “a failing company peddling lies and deception.” Capybara believes SoundHound is “misleading investors about their AI capabilities” and is “hiding the fact that it has lost some of its biggest customers,” including Mercedes-Benz (MBGYY), Deutsche Telekom (DTEGY), and Netflix (NFLX). “SoundHound went public via a SPAC merger and used fantasy projections to sell their failing business to retail investors. The company continues to use these metrics to hoodwink investors,” the report reads. Capybara believes SoundHound is “worth $1.00 per share or less. Most of that value is from their accumulated net operating losses which can be used to offset future tax liabilities. The company’s technology is a commodity and has little value in the crowded and hyper-competitive voice recognition market.” Shares of SoundHound have slid about 8% to $7.60 in morning trading.