Datavault AI Inc., a player in the artificial intelligence sector trading under the ticker DVLT on the NASDAQ, experienced a notable stock price decrease on Friday following an earlier surge the previous day. Investors are adjusting to new developments impacting the company’s market position and investor confidence.
A major contributing factor to the stock's downward adjustment was the recent disposal of a substantial stake by Scilex Holding Co., a significant shareholder in Datavault AI. In accordance with a Form 4 filing, Scilex Holdings executed open-market sales totaling 14,713,490 shares between January 6 and January 8, 2026. These shares were sold within a price range of approximately $1.07 to $1.37 each. Post-transaction, Scilex retains an equity position amounting to roughly 229.7 million shares.
The nature of these sales, identified as open-market transactions, signals an intentional reduction in Scilex’s economic exposure to Datavault AI rather than an internal reallocation of assets. Such a sizable and transparent sell-down by an influential shareholder can unsettle market participants, often triggering additional seller activity and exerting downward pressure on the stock price. Market observers interpret Scilex’s move as a potentially bearish indicator, which likely influenced the share price contraction seen on Friday.
Beyond shareholder maneuvers, Datavault AI recently disclosed strategic initiatives aimed at expanding its technological footprint. The firm announced plans to deploy its SanQtum AI platform in two major metropolitan areas—New York City and Philadelphia. This deployment capitalizes on International Business Machines Corporation’s (NYSE: IBM) watsonx AI technologies to enhance Datavault’s capabilities in data processing. The initiative is designed to offer clients secure and efficient data storage solutions along with real-time scoring technology. These advancements facilitate the immediate conversion of raw datasets into tradable digital assets, supporting clients in leveraging data for commercial purposes swiftly and securely.
Concurrently, Datavault AI is poised to launch its DVHOLO holographic displays and ADIO spatial audio innovations in partnership with Riflessi, a luxury retail venue based in New York City. This collaborative project, slated to commence in February 2026, aims to deliver immersive advertising experiences that utilize cutting-edge holographic and audio technologies. By integrating these solutions into the retail environment, Datavault AI anticipates generating new revenue streams through customized content offerings, enhancing the consumer engagement and advertising potential within high-end retail settings.
From a technical analysis standpoint, DVLT shares are exhibiting overall bearish tendencies. The stock is trading approximately 11.1% below its 20-day simple moving average (SMA), and even further—about 29.2%—below its 100-day SMA. Such positioning signals prevailing downward momentum over both short- and medium-term periods. Over the past twelve months, the stock's price declined roughly 21.98%, placing it considerably closer to its 52-week lows than to its highs.
Examining momentum indicators shows a nuanced outlook. The Relative Strength Index (RSI) stands at 44.54, a neutral value indicating that the stock is neither overbought nor oversold. Conversely, the Moving Average Convergence Divergence (MACD) indicator is positioned above its signal line, which typically suggests that bullish momentum may be building. The coexistence of a neutral RSI with a bullish MACD points to a mixed technical environment where short-term gains could emerge despite prevailing downward price trends.
Market participants identify a key resistance level at approximately $1.00, a price point which the stock would need to surpass to signal potential reversal or further strength. At present, no explicit support levels are noted, which could imply vulnerability to additional downside moves.
Looking ahead, investors are anticipating Datavault AI’s upcoming earnings report scheduled for March 30. Analyst projections indicate an expected loss per share (EPS) of nine cents, which, while negative, represents a significant improvement from a loss of $2.00 per share the prior year. Revenue forecasts are equally optimistic, anticipating approximately $24.7 million in revenue, markedly up from just $0.9 million year-over-year.
Consensus analyst sentiment currently favors the stock, with a "Buy" rating and an average price target of $4.00, reflecting confidence in the company’s growth trajectory despite recent setbacks. Notably, Maxim Group has recently upgraded their rating to "Buy," increasing their price target from $3.00 to $4.00, indicating positive shifts in outlook among financial analysts covering Datavault AI.
Reviewing the stock’s standing through Benzinga Edge rankings provides a more critical perspective. Datavault AI's momentum rating is considered weak, scoring 20 out of 100, signifying underperformance relative to the broader market. Financial quality also scores low at 25 out of 100, suggestive of concerns regarding the company’s financial stability. Moreover, the value metric rates at just 4 out of 100, indicating that the stock trades at a significant premium compared to industry peers, a factor warranting investor caution.
Taken together, these indicators underscore substantial challenges facing Datavault AI from a market sentiment and valuation perspective. Investors are advised to evaluate these risks thoroughly, especially given the notable selling pressure from major shareholders and current valuation metrics.
Price action at the time of reporting showed a 6.53% decline, with shares trading near $0.94. This decrease aligns with the day's broader downward trajectory following the large insider selling activity and reflects investor concerns about the company’s immediate prospects.