SoundHound AI stock was falling early on Wednesday following its earnings. The issue looks like one of high expectations, with a “sell the news” reaction after a steep runup ahead of the report.SoundHound shares were down 13% at $6.

SoundHound AI ( SOUN) shares plunged 16% Wednesday, a day after the provider of artificial intelligence (AI) voice technology software reported a big drop in gross margin . The Nvidia ( NVDA )-backed company’s third-quarter GAAP gross margin sank 24.3 percentage points to 48.6%, and non-GAAP gross margin tumbled 14.0 percentage points to 59.7%.

Shares of SoundHound AI (NASDAQ: SOUN) traded much lower on Wednesday, following a robust third-quarter earnings report. Your average Wall Street analyst firm had expected SoundHound AI to report a net loss of $0.