The stock market continues to reward speculators willing to buy companies without regard to their underlying fundamentals.
SoundHound AI (SOUN) posted revenue of $13.46 million (+53.8% Y/Y). It lost $0.04 a share. Its market share closed at $1.69 billion. SOUN stock trades at an unsustainable 27 times enterprise value to sales ratio.
Bears hold a 23.55% short interest against the firm. Nvidia’s small investment in the company is propping the share price.
In the gaming platform sector, Unity Software (U) may end its yearlong downtrend. Shares lost around 60% of its value in the last year. The firm lost $0.32 a share after revenue declined by 16% Y/Y to $449.3 million. Despite cutting its full-year sales outlook, U stock jumped by around 9% last Friday, August 8, 2024.
Hopeful investors are betting that Unity will launch Unity 6 in the fall of 2024. Its new Chief Product Officer for Advertising, Jim Payne, may lift results. Additionally, the firm replaced its CFO.
Fastly (FSLY) lost one-fifth of its value last week after posting Q2 2024 results. It will cut 11% of its staff, after cutting its guidance. For the year, Fastly expects demand issues from its largest customers on contracts hurting revenue.
FSLY stock is a high-risk speculation. It may bounce back briefly, only to continue its long-term decline.
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