Auddia Inc (NASDAQ:AUUD), an AI audio company, saw its shares plunge 61.26% on Friday. The drop followed the pricing of a public offering of about 5.08 million shares and warrants at $2.36 per unit.
• Why are AUUD shares down today?
Public Offering Details
The offering is expected to raise about $12 million in gross proceeds, with funds earmarked for working capital and general corporate purposes.
The warrants are exercisable immediately at $2.36 per share and will expire upon completion of a previously announced merger or within five years.
The deal is expected to close around April 27, 2026, with Dawson James Securities acting as the exclusive placement agent.
Recent Stock Surge
The decline follows a sharp rally on Thursday, when shares surged after the U.S. Patent and Trademark Office approved LT350’s 14th patent, expanding the company’s AI infrastructure intellectual property portfolio.
The patent supports its canopy-based system designed for high-density AI compute deployment in unused parking lot space and addresses key constraints such as land, power and cooling.
Short Interest
Short interest in Auddia rose to 191.03K shares, or 38.23% of its float. At the current volume, shorts could be covered in about one day, fueling a potential short squeeze.
Auddia develops proprietary AI technology for audio identification and classification.
AUUD Technical Analysis: Bearish Trend and Key Levels
Auddia is currently trading 60.8% below its 20-day simple moving average (SMA) and 73% below its 100-day SMA, indicating a bearish trend in both the short- and intermediate-term.
The stock’s price is also 85.4% below its 200-day SMA, suggesting a significant long-term downtrend.
The relative strength index (RSI) is at 51.50, indicating neutral momentum, suggesting neither buyers nor sellers have a strong advantage at this time.
- Key Resistance: $2.50 — This level may act as a barrier for upward movement.
- Key Support: $1.50 — A critical level where buying interest could emerge.
Auddia’s 12-month performance shows a staggering 93.13% decline, reflecting ongoing challenges and a lack of investor confidence. Currently, the stock is trading near its 52-week low of $1.70, which indicates a weak position within its yearly range.
AUUD Stock Price Action After Public Offering News
AUUD Stock Price Activity: Auddia shares were down 61.26% at $1.96 at the time of publication on Friday, according to Benzinga Pro data.
Photo: Shutterstock
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