Stock Performance and Volatility - SoundHound AI stock surged 836% in 2024 after Nvidia's investment was revealed [1] - The stock fell more than 31% as of Jan 20, 2025, and is trading nearly 50% down from its 52-week high of $24 98 [2][3] - The stock is highly volatile, with 30-day average trading volume fluctuating between less than 8 million and nearly 112 million [3] Valuation and Financial Health - SoundHound AI is trading at more than 60 times its trailing revenue and 17 times its book value, indicating a massive premium [4] - The company grew sales by 89% to $25 1 million in the period ending Sept 30, 2024, but incurred an operating loss of $33 8 million, more than double the $14 5 million loss from the previous year [8] - Over the past nine months, the company burned through $75 8 million in cash from operating activities, leaving it with $135 6 million in cash and cash equivalents [8] Growth Opportunities and Challenges - SoundHound AI's voice AI system has potential applications in cars, drive-thrus, and various industries, offering growth opportunities [6] - The company faces significant competition in the voice AI market and may struggle to gain market share without strong fundamentals and resources [7] - Heavy spending on sales and marketing in a competitive market could further delay profitability [9] Investment Considerations - The stock's recent decline may appear as a buying opportunity, but its inflated valuation suggests further declines are possible [10] - SoundHound AI is a highly volatile and speculative stock, vulnerable to negative news and market sentiment [11] - The company's weak fundamentals make it a risky investment, and avoiding the stock may be prudent until significant improvements are seen [11]

Shares of conversational artificial intelligence (AI) company SoundHound AI (SOUN 5.00%) had jumped by 18.7% this week as of early Friday, according to data from S&P Global Market Intelligence, as investors reacted to two pieces of news.The first was SoundHound's announcement that it's partnering with Rekor Systems to bring a voice command and data-sharing system to emergency vehicles. The second came from President Trump, who revoked an executive order signed by former President Biden that had required com ...

Stock Performance - SoundHound AI, Inc (SOUN) ended the recent trading session at $16 38, showing a -0 85% change from the previous day's closing price [1] - The stock underperformed compared to the S&P 500's daily gain of 0 61%, the Dow's increase of 0 3%, and the Nasdaq's rise of 1 28% [1] - Over the past month, the company's shares lost 18 38%, lagging behind the Computer and Technology sector's gain of 1 24% and the S&P 500's gain of 2 08% [1] Earnings and Revenue Expectations - The company is expected to report an EPS of -$0 11 in its upcoming earnings report, marking an 83 33% decline compared to the same quarter of the previous year [2] - Revenue is anticipated to be $33 49 million, representing a 95 29% increase from the prior-year quarter [2] Analyst Projections and Revisions - Investors should monitor recent shifts in analyst projections for SoundHound AI, Inc, as these revisions reflect near-term business trends [3] - Positive changes in estimates indicate analysts' favorable outlook on the company's business health and profitability [3] Zacks Rank and Industry Performance - SoundHound AI, Inc currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate remaining stagnant over the past month [5] - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 60, placing it in the top 24% of all industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, according to Zacks research [6] Investment Tools and Metrics - Investors are encouraged to utilize Zacks com to follow stock-moving metrics and updates in the coming trading sessions [7]

Company Overview - Soundhound AI's share price surged 836% in 2023, though it has since pulled back more than 40% from its peak, with a market cap around $5 billion [2] - The company was founded in 2005 with a mission to enable people to "talk to technology just as they do to each other" [2] - Soundhound AI's voice AI technology is utilized across multiple industries, including automotive, hospitality, and restaurants [2] - The company boasts a prestigious customer base, including Hyundai, Kia, Stellantis brands, Applebee's, Chipotle Mexican Grill, Five Guys, and Jersey Mike's [3] - Soundhound AI holds 155 patents and has 115 patents pending, covering areas such as machine learning, natural language understanding, and speech recognition [4] Financial Performance - Soundhound AI's revenue has grown at a compound annual growth rate of 51% since 2020 [5] - In Q3 2024, the company's revenue increased 89% year-over-year to $25.1 million [5] - The company posted a net loss of nearly $21.8 million in Q3 2024 but expects to achieve positive adjusted EBITDA by the end of the year [10] Market Opportunity - Soundhound AI estimates its total addressable market to be at least $140 billion, with potential growth to $160 billion by 2026 according to Juniper Research [7] - The proliferation of IoT devices, estimated at 75.4 billion globally in 2024, presents a significant opportunity for Soundhound's voice AI technology [8] Competitive Landscape - Soundhound AI faces competition from deep-pocketed rivals such as Apple, Google parent Alphabet, Microsoft, and OpenAI [9] - The company has diversified its customer base, with six sectors each contributing 5% to 25% of revenue, and the largest customer accounting for only 12% of total revenue [6]

SoundHound AI (SOUN 12.90%) stock is surging higher in Tuesday's trading thanks to a duo of catalysts. The conversational artificial intelligence (AI) specialist's share price was up 11.7% at 1:10 p.m. ET and had been up as much as 16.5% earlier in the daily session.SoundHound AI published a press release today announcing that it had formed a partnership with Rekor Systems to bring new services to police and emergency vehicles. In addition to the business-specific catalyst, the stock is also getting a boost ...

This high-flying market darling may not be a great buy right now, but the stock would look great after a quick price correction.It never hurts to plan ahead.One of the greatest hypergrowth stocks on the market is a terrible buy right now, but that should change in 2025. An overheated stock price should cool down in the next few months, while the underlying long-term success story remains.As a result, I wouldn't touch shares of SoundHound AI (SOUN 8.60%) right now. At the same time, I'm prepared to pounce if ...

SoundHound AI (SOUN 0.39%) stock is seeing strong gains in Tuesday's trading. The conversational artificial intelligence (AI) company's share price was up 2.2% as of 10:30 a.m. ET, amid a gain of 0.2% for the S&P 500 (^GSPC -0.04%) and a gain of 0.3% for the Nasdaq Composite (^IXIC -0.04%). The stock had been up as much as 12.4% early in the session.After some big sell-offs early in 2025's trading, SoundHound AI stock is surging today thanks to some bullish macroeconomic news. But while the company's share ...

Nvidia (NVDA -1.97%) was a $360 billion company at the start of 2023, but just two years later, its worth has accelerated to a whopping $3.3 trillion. The main driver behind the company's incredible growth is Nvidia's graphics processors (GPUs) for data centers, which are the best in the world for developing artificial intelligence (AI) models.AI has been a big driver of its growth and Nvidia is looking for ways to ensure AI keeps fueling its growth going forward. To help with that, over the past year or so ...

SoundHound AI (SOUN -8.91%) stock was one of the market's biggest winners in 2024. The company's share price skyrocketed 835.8% across last year's trading, according to data from S&P Global Market Intelligence. SoundHound AI is an early leader in the conversational artificial intelligence (AI) space, and its share price saw massive growth last year in conjunction with rising demand for voice-based software interfaces and other positive catalysts. The stock got a big boost early in 2024's trading after it wa ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...