Core Insights - The article highlights Oliver Rodzianko's macro-focused investment strategy, emphasizing valuation discipline and long-term fundamentals in sectors like technology, semiconductors, AI, and energy [1] Group 1: Investment Strategy - The investment approach is centered on a long-only, unleveraged portfolio aimed at capital preservation and capturing asymmetric upside during market dislocations [1] - Positions are maintained through medium-term cycles and exited based on intrinsic value assessments [1] Group 2: Research and Publications - Rodzianko's research is disseminated through platforms such as Seeking Alpha, TipRanks, and GuruFocus [1] - The Nasdaq High-Alpha Black Swan Portfolio is a key component of his strategy, designed for resilience and long-term outperformance [1] Group 3: Future Developments - There is an ongoing effort to formalize the investment framework within an asset management firm, alongside the establishment of a family office focused on lower-volatility capital stewardship [1]

Core Viewpoint - The article discusses a class action lawsuit against SoundHound AI, Inc. for alleged violations of the Securities Exchange Act of 1934, with a focus on the company's internal control weaknesses and financial reporting issues during a specified class period [1][3][4]. Group 1: Lawsuit Details - The class action lawsuit is titled Liles v. SoundHound AI, Inc., and it allows purchasers of SoundHound securities from May 10, 2024, to March 3, 2025, to seek lead plaintiff status by May 27, 2025 [1][5]. - The lawsuit alleges that SoundHound made false or misleading statements regarding its internal controls over financial reporting, particularly related to its acquisitions of Amelia Holdings, Inc. and SYNQ3 [3][4]. - On March 4, 2025, SoundHound disclosed its inability to timely file its annual report for 2024, citing complexities in accounting for its acquisitions and identified material weaknesses in internal controls, leading to a nearly 6% drop in stock price [4][3]. Group 2: Company Background - SoundHound provides an independent voice AI platform aimed at enhancing conversational experiences for businesses across various industries [2]. - Robbins Geller Rudman & Dowd LLP, the law firm representing the plaintiffs, is recognized as a leading firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [6].

Core Viewpoint - NVIDIA Corporation and SoundHound AI, Inc. are making significant strides in the AI sector, with both companies experiencing stock price increases over the past year, but they are targeting different segments of the AI market [1] Group 1: SoundHound AI Insights - The recent trade agreement between the U.S. and China has positively impacted SoundHound AI, reducing tariffs on Chinese imports from 145% to 30% and on American commodities from 125% to 10% [2] - SoundHound AI has entered the Chinese market through a partnership with Tencent, which will integrate its voice AI into Tencent's cloud solutions for the automotive sector [3] - In Q1 2025, SoundHound AI's revenues surged by 151% year-over-year to $29.1 million, and its adjusted EPS loss narrowed by 14% [4] - The company aims for 85% to 90% revenue growth and a positive adjusted EBITDA for the full year 2025 [4] - SoundHound AI is not yet profitable and has struggled to meet its guidance, with a negative adjusted EBITDA of $22.2 million five quarters later [8] Group 2: NVIDIA Insights - NVIDIA is benefiting from substantial investments in AI infrastructure by major companies like Amazon and Alphabet, which are purchasing NVIDIA's GPUs to enhance their AI capabilities [5] - By 2028, NVIDIA anticipates AI data center spending to reach $1 trillion, which is expected to drive stock growth [6] - NVIDIA's net profit margin stands at 55.9%, outperforming the Semiconductor - General industry average of 49.5%, indicating strong profitability and growth potential [8] - NVIDIA holds over 80% market share in the GPU space, providing a competitive edge that can help sustain stock performance amid market volatility [9]

Core Viewpoint - A class action securities lawsuit has been filed against SoundHound AI, Inc. for alleged securities fraud affecting investors between May 10, 2024, and March 3, 2025 [1][2]. Group 1: Allegations and Issues - The lawsuit claims that SoundHound AI, Inc. made false statements regarding material weaknesses in its internal controls over financial reporting, which impaired its ability to account for corporate acquisitions [2]. - It is alleged that the company overstated its remediation efforts concerning these material weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2]. - The lawsuit indicates that SoundHound AI, Inc. may require additional time and resources to properly account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delayed financial report filings with the SEC [2]. Group 2: Legal Process and Participation - Investors who suffered losses during the specified timeframe have until May 27, 2025, to request appointment as lead plaintiff, although participation in any recovery does not require this role [3]. - Class members may be entitled to compensation without incurring any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Law Firm Background - Levi & Korsinsky, LLP has a history of securing significant recoveries for shareholders and has been recognized as one of the top securities litigation firms in the United States for seven consecutive years [4].

Core Viewpoint - SoundHound AI presents a value opportunity for investors in 2025 despite facing challenges, with growth driven by advanced voice-centric AI services and the acquisition of Amelia [1][2]. Group 1: Financial Performance - SoundHound AI reported revenue of less than $30 million in FQ1, showing over 150% year-over-year growth, up from just over 100% in Q4 2025 and about 80% in Q3 2025 [3]. - The company has reaffirmed its revenue guidance of $167 million for the upcoming year, indicating about 100% year-over-year growth compared to F2024 [5]. - The company has no client representing more than 10% of revenue, which is expected to decrease further, indicating improved client diversification [4]. Group 2: Strategic Initiatives - The acquisition of Amelia enhances SoundHound's capabilities in developing industry-specific agentic-AI applications, allowing for increased cross-selling and upselling opportunities [2]. - The company is expanding into new verticals, including automotive, hospitality, healthcare, and retail, as highlighted in their Q1 results [2]. Group 3: Market Position and Analyst Ratings - Analysts have adjusted price targets for SoundHound AI, with a 12-month average forecast of $10.29, indicating a potential downside of 6.58% from the current price of $11.01 [11]. - Despite a Hold rating among analysts, there is potential for significant upside, with some forecasts suggesting a 50% increase based on low price targets [11]. Group 4: Capital Structure and Profitability Outlook - SoundHound maintains a no-debt position, which has been achieved through dilutive actions that increased the share count by 45% over the past year, but this has allowed for unencumbered cash flow [7]. - The company is expected to reach profitability within the next two to three years, potentially allowing for share repurchases and rebuilding shareholder leverage [8][6]. Group 5: Market Sentiment and Short Interest - Short interest in SoundHound AI peaked at over 40%, but has been decreasing since January 2025, with a still elevated interest of 33% in late April following the Q1 report [9]. - The recent 20% price increase suggests that short-covering may have influenced the stock's performance [9].

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. ...

Core Viewpoint - A class action securities lawsuit has been filed against SoundHound AI, Inc. alleging securities fraud that affected investors between May 10, 2024, and March 3, 2025 [1][2]. Group 1: Lawsuit Details - The complaint claims that SoundHound AI, Inc. made false statements regarding its internal controls over financial reporting, which impaired its ability to account for corporate acquisitions [2]. - It is alleged that the company overstated its remediation efforts concerning material weaknesses in its internal controls [2]. - The lawsuit indicates that SoundHound's reported goodwill following the Amelia Acquisition was inflated and would require correction [2]. - The company is expected to incur additional time and costs to properly account for the SYNQ3 and Amelia Acquisitions due to these weaknesses [2]. - The allegations suggest an increased risk of the company failing to file certain financial reports with the SEC in a timely manner [2]. - As a result, the company's public statements were deemed materially false and misleading throughout the relevant period [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until May 27, 2025, to request appointment as lead plaintiff [3]. - Participation in the lawsuit does not require serving as a lead plaintiff, and there are no out-of-pocket costs for class members [3]. Group 3: Firm Background - Levi & Korsinsky, LLP has a history of securing hundreds of millions of dollars for shareholders and has extensive expertise in complex securities litigation [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4].

Financial Performance - Revenues for Q1 2025 reached $29,129,000, a significant increase of 151.5% compared to $11,594,000 in Q1 2024[17] - Operating expenses totaled $98,968,000 in Q1 2025, up from $40,123,000 in Q1 2024, reflecting a 146.2% increase[17] - Net income for Q1 2025 was $129,932,000, compared to a net loss of $33,009,000 in Q1 2024, marking a turnaround of $162,941,000[17] - The company reported a basic net income per share of $0.33 for Q1 2025, compared to a loss of $0.12 per share in Q1 2024[17] - For the three months ended March 31, 2025, the company reported a net income of $129.9 million, a significant improvement from a net loss of $33.0 million in the same period of 2024[23] - For the three months ended March 31, 2025, the net income attributable to common shareholders was $129.2 million, compared to a net loss of $33.4 million in the same period of 2024, representing a significant turnaround[168] - The basic net income per share for Q1 2025 was $0.33, while the diluted net income per share was $0.31, compared to a basic and diluted net loss per share of $(0.12) in Q1 2024[168] Assets and Liabilities - Total current assets increased to $295,051,000 as of March 31, 2025, up from $255,520,000 at the end of 2024, representing a growth of 15.5%[16] - Total liabilities decreased to $190,543,000 as of March 31, 2025, down from $371,300,000 at the end of 2024, a reduction of 48.7%[16] - Cash and cash equivalents rose to $245,809,000 as of March 31, 2025, compared to $198,240,000 at the end of 2024, an increase of 23.9%[16] - The total stockholders' equity increased to $396,993,000 as of March 31, 2025, up from $182,653,000 at the end of 2024, a growth of 117.8%[16] - The company had an accumulated deficit of $813.1 million as of March 31, 2025, highlighting ongoing financial challenges despite recent income[29] Cash Flow and Financing - The company experienced a net cash used in operating activities of $19.2 million for the three months ended March 31, 2025, compared to $21.9 million for the same period in 2024, indicating a slight improvement in cash flow management[23] - The company reported a net cash provided by financing activities of $67.0 million for the three months ended March 31, 2025, compared to $142.7 million in the same period of 2024, reflecting a decrease in financing activity[23] - Cash paid for interest was $2,000 for the three months ended March 31, 2025, a significant decrease from $3.5 million in the same period of 2024[25] - The company anticipates seeking additional funding through debt or equity financing arrangements to support ongoing operations[30] Acquisitions - The company completed the acquisition of Synq3, Inc. on January 3, 2024, and Amelia Holdings, Inc. on August 6, 2024, as part of its strategy to expand its technology offerings[28] - The Company acquired SYNQ3 for a total purchase consideration of $15.8 million, which includes $3.9 million in cash and 5,755,910 shares of Class A Common Stock[50] - The acquisition of SYNQ3 is expected to expand the Company's AI customer service solutions and significantly extend its market reach[50] - The Company acquired Amelia Holdings for a preliminary purchase consideration of $98.6 million, including 3,809,520 shares of Class A Common Stock and $8.4 million in cash[61] - The acquisition of Amelia is expected to strengthen the Company's position in voice and conversational AI and expand its market reach into new industries[60] Revenue Streams - The company generates revenues through three pillars: Product Royalties, Service Subscriptions, and Monetization, with the majority of current revenue coming from the first two pillars[203][211] - Revenue from hosted services reached $21.9 million, up 146.5% from $8.9 million in the prior year[94] - Service subscriptions generated $24.6 million, a substantial increase from $3.6 million in the same quarter of 2024[96] - The company recognized $10.3 million in revenue from deferred revenue at the beginning of the reporting period, compared to $1.9 million for the same period in 2024[99] Stock and Equity - The company issued 4,248,900 shares of Class A common stock under the Second Equity Distribution Agreement, raising $66,283,000[18] - The Company raised approximately $25.0 million in cash proceeds from the issuance of 835,011 shares of Series A Convertible Preferred Stock at $30.00 per share[130] - The total unrecognized stock-based compensation expense related to unvested RSUs was approximately $135.1 million as of March 31, 2025, expected to vest over a weighted average period of 2.82 years[161] - The total unrecognized stock-based compensation expense related to unvested Performance-Based RSUs was approximately $6.2 million as of March 31, 2025[160] Legal and Compliance - The company is involved in ongoing legal proceedings, including a settlement agreement requiring a payment of $1.8 million related to a litigation case[112] - The company recorded a liability of $2.8 million for potential sales tax exposure as of March 31, 2025, compared to $3.1 million as of December 31, 2024[116] Market Strategy and Outlook - The company expects monetization revenue to increase significantly in the future as it builds out and scales its voice-enabled ecosystem[208] - The company aims to provide a superior ecosystem with definable privacy controls, which are increasingly important in the Voice AI industry[198] - The company believes that its technology offers better terms for customers, allowing them to maintain brand control and innovate without outsourcing to third-party assistants[195] - The company anticipates that its disruptive three-pillar business model will create a monetization flywheel, increasing adoption and expanding its addressable market[208] - The company has expanded its global reach, localizing its solution to include 25 languages, indicating a strategy for international market development[213]

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of SoundHound AI, Inc. regarding a class action lawsuit due to alleged misleading statements and material weaknesses in financial reporting [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from May 10, 2024, to March 3, 2025 [3]. - Allegations include: - Material weaknesses in SoundHound's internal controls over financial reporting, affecting the company's ability to account for acquisitions [3]. - Overstatement of remediation efforts regarding these internal control weaknesses [3]. - Inflated reported goodwill following the Amelia Acquisition, which would require correction [3]. - Additional time and expense needed to account for the SYNQ3 and Amelia Acquisitions [3]. - Increased risk of failing to timely file financial reports with the SEC [3]. - Public statements made by the company were materially false and misleading [3]. Next Steps for Shareholders - Shareholders are encouraged to register for the class action by May 27, 2025, to participate in the case [4]. - Registration includes enrollment in a portfolio monitoring software for status updates throughout the case lifecycle [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and ensure companies adhere to responsible business practices [5]. - The firm seeks recovery for investors who suffered losses due to misleading statements or omissions that led to stock inflation [5].

ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) the material weaknesses in SoundHound's internal controls over financial reporting impaired the Company's ability to effectively account for corporate acquisitions; (ii) in addition, the Company overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial repor ...