Bubble In Micro/Small Cap AI Stocks Index Burst Last Week, Down 15%

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Introduction

The eight micro/small cap ($50M to $2B) AI & related stocks in the munKNEE Micro/Small Cap AI Stocks Index  were in bubble mode in December going up 18.6%, on average, that month but the bubble began to deflate in January (-4.4%) and that negative trend has continued so far in February, going down 14.8% last week.

The performances of the 8 constituents in the index are ranked below in descending order as to their performances last week, as well as YTD along with their latest news, commentary and/or analysis where available:

1. Soundhound (SOUN):  up 2.6% last week; up 84.9% YTD
   • SOUN offers voice AI solutions that let businesses offer conversational experiences to their customer in 25 different languages.
   • latest news, commentary and/or analysis:
     • SoundHound AI CEO talks Nvidia's $3.7 million investment
2. Digimarc (DMRC):  down 6.6% last week; down 0.7% YTD
   • DMRC software provides digital identifiers designed to address counterfeiting, product authenticity, recycling accuracy, and supply chain traceability.
   • latest news, commentary and/or analysis:
     • Digimarc Accelerates the Global Fight Against Plastic Pollution
3. Verses AI (VRSSF):  down 7.0% last week; down 7.0% YTD
   • VRSSF offers a voice and text-based personal AI assistant designed to learn about its users in order to better organize, manage, and optimize their digital life.
   • latest news, commentary and/or analysis:
     • VERSES Challenges AI Industry with Benchmark Tests
4. Rekor Systems (REKR): down 9.8% last week; down 30.9% YTD
   • REKR leverages AI, machine learning, and holistic data to support the intelligent infrastructure for smart mobility.
   • latest news, commentary and/or analysis:
     • Rekor Announces Early Redemption of Senior Secured Notes, Strengthening Company's Financial Position
5. BigBear.ai (BBAI):  down 11.8% last week; down 8.9% YTD
   • BBAI provides AI and machine learning to assist customers in aggregating, interpreting, and synthesizing data to enable real-time decision-making capabilities.
   • latest news, commentary and/or analysis:
     • BigBear.ai to Report Fourth Quarter 2023 Results on March 7, 2024
6. Innodata (INOD):  down 13.7% last week; down 13.1% YTD
   • INOD provides AI-enabled software platforms and managed services for AI data annotation, AI digital transformation, and industry-specific business processes.
   • latest news, commentary and/or analysis:
     • Innodata Reports Fourth Quarter and Fiscal Year 2023 Results
7. Evolv Technologies (EVLV):  down 17.6% last week; down 8.7% YTD
   • EVLV screens people for threats without sacrificing the visitor experience.
   • latest news, commentary and/or analysis:
     • Shareholder Rights Advocates Investigate EVLV Regarding Possible Securities Fraud Violations
8. Applied Optoelectronics (AAOI):  down 33.7% last week; down 26.8% YTD 
   • AAOI provides fiber-optic access network products for the cable broadband, internet data center, telecom, and fiber-to-the-home markets.
   • latest news, commentary and/or analysis:
     • Applied Optoelectronics Reports Fourth Quarter and Full Year 2023 Results

Summary

The above 8 stocks were down 14.8%, on average, last week and are now down 8.3% YTD.

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