Key Takeaways SoundHound AI reported sequential GAAP and non-GAAP gross margin gains in Q3 2025.SOUN cut cloud costs by shifting to proprietary models and integrating acquisitions.Polaris model lowers per-query costs as volumes rise, boosting operating leverage.For investors tracking SoundHound AI, Inc. (SOUN) , expanding gross margins have become a key data point in assessing whether the stock is entering a more durable phase of its growth story. In third-quarter 2025, the company reported sequential impro ...

Core Insights - Artificial intelligence is a compelling long-term investment theme, with SoundHound AI and C3.ai representing distinct approaches within the AI sector [1][2] Company Performance - SoundHound has positioned itself as a leader in voice-enabled AI across various sectors, while C3.ai focuses on enterprise AI applications [2] - Over the past six months, SoundHound's stock has decreased by 39.4%, and C3.ai's stock has fallen by 37.5%, both underperforming the Zacks Computers – IT Services industry, which declined by 18.6% [4] - SoundHound reported a 68% year-over-year revenue growth in Q3, with revenues reaching $42 million, while C3.ai's total revenues for the fiscal second quarter were $75.1 million, with subscription revenue making up 93% of total revenue [10][14] Valuation and Financial Metrics - SoundHound trades at a forward price-to-sales ratio of 13.26X, in line with the industry average, while C3.ai trades at a significantly lower 4.59X, indicating a steep discount [8] - SoundHound is narrowing its projected losses, with a consensus estimate for a loss per share of 6 cents in 2026, while C3.ai faces deeper expected losses with a projected loss of $1.21 per share [13][18] Growth and Strategic Initiatives - SoundHound is expanding its voice commerce capabilities and has partnerships with companies like Parkopedia and OpenTable to enhance monetization [12] - C3.ai has shown strong federal bookings growth, with a 49% sequential increase in bookings and an 89% year-over-year growth in federal bookings, indicating strong momentum in government sectors [15] Investment Outlook - SoundHound's growth trajectory and expanding monetization ecosystem suggest better upside potential compared to C3.ai, which is facing revenue contraction and deeper losses [20][21]

Filling your portfolio with long-shot stocks isn't a great idea. Such investments have high risks of failure and may not pan out. However, if you want to devote a small fraction of your portfolio (say 5% to 10% of its value) to stocks with huge upside and spread your bets out among them, then I think this can be a fun investment strategy. It's not for everyone. If you start having heart palpitations any time you see a stock you own fall by 50% or more, then I wouldn't encourage you to invest like this. B ...

SoundHound AI (NASDAQ: SOUN) voice controls are finding users in drive-through windows, phone menu systems, and in-car infotainment systems. A billion-dollar backlog of long-term contracts has started to generate revenues, management expects break-even EBITDA profits in 2025, and the total addressable market for voice-driven human-to-computer communication is enormous. Starting from a $3.13 billion market cap and a share price of $7.46, it seems reasonable to expect roughly 15% of compound annual growth r ...

Core Viewpoint - SoundHound AI (SOUN) has experienced a significant decline in stock value, dropping 51% over the past year and 13% last week, raising concerns about its path to profitability ahead of its upcoming earnings report on February 26, 2026 [1]. Performance Summary - SoundHound's stock fell 12.85% this week, closing at $7.46, while the S&P 500 gained 11.81% over the same period [1]. - The company's year-to-date decline stands at 25.18%, contrasting with the S&P 500's flat performance [1]. - SoundHound has a market cap of $3.13 billion with trailing twelve-month revenue of $148.4 million, resulting in a price-to-sales ratio of 21x, indicating high growth expectations [1]. Storyline One: Earnings Uncertainty - The upcoming Q4 2025 earnings report is expected to show sales of $53.88 million, up from $42.05 million in the previous quarter, with an adjusted EPS forecast of -$0.10 [1]. - If the company meets or misses these expectations, further selling pressure may occur [1]. Storyline Two: Insider Selling - On December 22, 2025, six executives sold shares at $11.2769, including CEO Keyvan Mohajer, who sold 144,326 shares for approximately $1.6 million [1]. - There have been no open market buys recorded in the past three months, with 10 sales, indicating a cautious sentiment among insiders [1]. Storyline Three: Competitive Valuation - SoundHound competes with larger tech companies like Alphabet, which trades at 9.3x sales with a profit margin of 32.8%, while SoundHound's valuation assumes it can maintain its niche against competitors [1]. - Wall Street estimates a -$55 million EBITDA for 2026, necessitating significant margin improvements or scale to achieve profitability [1]. - Analysts have set an average price target of $16.31, suggesting over 100% upside potential if the company can execute effectively [1].

Core Viewpoint - SoundHound AI's stock has significantly underperformed, dropping 51% over the past year, with a 12.85% decline this week alone, as investors reassess the company's path to profitability [2][9]. Group 1: Performance Analysis - The broader market declined by 1.29% this week, while SoundHound's stock fell nearly 10 times that amount, resulting in a year-to-date decline of 25.18% compared to the S&P 500's flat performance [3]. - SoundHound has a market cap of $3.13 billion but generated only $148.4 million in trailing twelve-month revenue, leading to a high price-to-sales ratio of 21x, indicating elevated growth expectations [4]. - The company's beta of 2.876 suggests it is highly volatile, moving almost three times as much as the market during both rallies and selloffs [3]. Group 2: Earnings Outlook - SoundHound is set to report Q4 2025 results on February 26, 2026, with Wall Street expecting a significant sequential sales increase from $42.05 million last quarter to $53.88 million in Q4 [6][7]. - Adjusted EPS is anticipated to be -$0.10 per share for Q4, and if the company meets or misses these expectations, further selling pressure is likely [7]. Group 3: Insider Activity - On December 22, 2025, six executives sold shares at $11.2769, with CEO Keyvan Mohajer selling 144,326 shares for approximately $1.6 million, indicating potential caution among insiders [8].

Core Viewpoint - SoundHound AI presents a significant investment opportunity with its voice AI technology already integrated into various everyday applications, despite a challenging stock performance this year [1][2]. Company Overview - SoundHound AI's current stock price is $7.46, with a market capitalization of $3.1 billion. The stock has seen a year-to-date decline of 24% and is down approximately 65% from its 52-week high of $22.17 [3][2]. Market Potential - The company identifies a total addressable market of $140 billion for its conversational AI technology, applicable across multiple sectors including automotive, financial services, restaurants, and healthcare [3][4]. Revenue Streams - SoundHound AI has established three primary revenue pillars: 1. Product royalties from embedding its voice AI in devices like smart TVs and vehicles [5]. 2. Service revenue from businesses utilizing its platform for customer interactions, such as appointment scheduling and order taking [5]. 3. Monetization through commissions or revenue sharing when its platform processes orders [5]. Financial Performance - In Q3 2025, SoundHound AI reported revenues of $42 million, with losses amounting to $109.3 million. The company is still in the early stages of revenue generation from its markets [8][7]. Future Outlook - The CFO indicated that the company is on track to maintain a hypergrowth trajectory while nearing break-even on the bottom line, which could enhance its position among AI stocks [9]. If profitability is achieved, it may positively impact the stock price, making current trading levels under $8 an attractive long-term investment opportunity [10].

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard. Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences. At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000 ...

Core Insights - SoundHound AI, Inc. (SOUN) identifies a total addressable market (TAM) exceeding $140 billion across various sectors, establishing itself as a prominent independent voice AI platform. The main investor concern revolves around the realistic accessibility of this market opportunity [1] Financial Performance - In the third quarter, SoundHound's revenue increased by 68% year over year, reaching $42 million. The management has revised its 2025 revenue forecast to a range of $165 million to $180 million. The company is now processing over 1 billion queries monthly, indicating a transition from pilot projects to larger-scale deployments, which enhances revenue visibility [2][11] Market Penetration and Growth Areas - The potential for reaching the TAM is contingent on vertical market penetration. The restaurant sector is a primary growth driver, while financial services, healthcare, and insurance are expanding through the Amelia 7 agentic platform. Although automotive sector challenges persist, new voice commerce integrations are helping to mitigate these issues. At CES 2026, SoundHound demonstrated various monetization features, including in-vehicle reservations and multi-agent navigation [3][4] Financial Position - SoundHound holds $269 million in cash with no debt, providing the company with the flexibility to invest aggressively while aiming for breakeven profitability by 2026. Although capturing the entire $140 billion TAM is unlikely in the short term, consistent enterprise wins and voice commerce growth indicate that a significant portion of the market is increasingly attainable [4][11] Competitive Landscape - Cerence Inc. and Amazon.com, Inc. are two major players influencing the accessibility of SoundHound's TAM. Cerence has strong ties within the automotive sector but is transitioning towards generative AI, which may limit its broader market capture. In contrast, Amazon operates at a large scale with its Alexa and AWS services but has historically focused on consumer applications rather than voice-driven enterprise solutions [5][6][7] Strategic Positioning - SoundHound's independent and vertically-focused agentic platform allows it to target specific segments of the TAM rather than competing across all areas simultaneously, which may enhance its market capture potential [8] Stock Performance and Valuation - SoundHound's stock has declined by 51.8% over the past six months, underperforming compared to the Zacks Computers - IT Services industry, which saw a 13.7% decline. The current forward 12-month price-to-sales ratio for SOUN is 14.05, slightly above the industry's 13.96 [9][13] Earnings Estimates - The Zacks Consensus Estimate for SOUN's loss per share in 2026 has widened to 6 cents from 5 cents, although this represents an improvement from a year-ago estimate of a 15-cent loss per share. Year-over-year growth estimates indicate significant improvements across various time frames [15][16]

SoundHound AI (NASDAQ: SOUN) isn't in a great place right now. The stock is down around 65% from its all-time high established in December 2024, and it has been on a massive downhill slide as of late. The stock looked like it was heading toward a new high in October when it crossed $20 per share, but now it trades for just a bit over $8. That's quite a bit of movement in a short time frame for SoundHound's stock, and some may think this justifies picking up shares, as the last time SoundHound AI was this ...