This week’s earnings season brought dramatic moves across several key stocks, with SoundHound AI surging, The Trade Desk facing steep declines, and Wendy’s issuing a disappointing profit forecast.

SoundHound AI stole the spotlight after reporting record-breaking Q2 results. The voice artificial intelligence company delivered revenue of $42.7 million, marking a staggering 217% year-over-year increase and sharply exceeding analysts’ expectations. The company also narrowed its non-GAAP net loss to just three cents per share, better than forecasted. Growth was robust across all divisions, including strong performances in automotive, enterprise AI, and restaurant solutions, demonstrating the payoff from its 2024 acquisitions. Enterprise AI set a new high for go-lives, restaurant technology deployments exceeded 14,000 locations, and automotive deals expanded through new contracts with major manufacturers. Despite the remarkable topline progress, gross margin declined to 39% due to the addition of lower-margin acquired businesses. Nonetheless, SoundHound AI increased its full-year revenue outlook and is targeting EBITDA profitability by year-end, underlining management’s confidence in sustaining growth momentum.

In stark contrast, The Trade Desk experienced significant pressure after releasing its latest financial results. While the digital advertising platform met revenue targets, investors reacted negatively to softer forward guidance. Concerns over economic headwinds and intensifying competition caused The Trade Desk’s stock to trade sharply lower as investors absorbed the implications of slower expected growth.

Additionally, Wendy’s lowered its profit forecast for the year, citing persistent cost pressures and weaker-than-anticipated sales growth. The fast-food chain is grappling with higher input costs and increased competition, leading management to adopt a more cautious outlook for the remainder of the year.

Overall, these divergent earnings illustrate the shifting landscape in technology and consumer sectors, highlighting both the opportunities for agile, innovative firms and the challenges faced by legacy players and those contending with macroeconomic headwinds.