Core Viewpoint - SoundHound AI has experienced significant stock volatility, with a notable rise of over 350% since the start of 2024, despite a decline from its peak due to Nvidia selling its stake and broader AI market sell-offs [1][2][5] Company Overview - SoundHound AI focuses on audio input for AI applications, differentiating itself from competitors that primarily use text input, which is particularly useful in hands-free situations [6] - The company has a current market capitalization of $3.9 billion, and to turn a $10,000 investment into $1 million, it would need to grow to nearly $400 billion, a challenging feat given the scale of existing giants in the industry [4] Financial Performance - In Q4, SoundHound's revenue grew by 101% to $34.5 million, with management projecting revenue between $157 million and $177 million for 2025, indicating a potential growth rate of 97% at the midpoint [7] - The revenue backlog at the end of Q4 was $1.2 billion, suggesting sustained growth potential for several years, even after accounting for the 2025 revenue forecast [8] Valuation Metrics - Despite a 60% decline from its all-time high, SoundHound's stock trades at a high valuation of 39 times sales, which is above the typical range of 10 to 20 times for software companies [9] - If SoundHound doubles its revenue as projected, the valuation could adjust to around 20 times sales, making it more attractive [10] Future Outlook - The future performance of SoundHound's stock will largely depend on its ability to sustain growth beyond 2025, with potential for significant stock price appreciation if revenue continues to double in subsequent years [11] - While the potential for turning a $10,000 investment into $1 million is unlikely, the company could still represent a successful investment opportunity that enhances portfolio returns [12]

Core Insights - SoundHound AI's share price initially surged due to Nvidia's investment but has since declined due to competitive pressures and disappointing performance at CES [1][2] - Nvidia's recent partnership with Yum! Brands poses a significant competitive threat to SoundHound, as it marks Nvidia's entry into the restaurant AI space [3][4] - SoundHound's growth prospects are uncertain, with significant competition in the voice AI market and a substantial financial loss of over $351 million last year [5][6] Company Performance - SoundHound's stock has dropped nearly 50% in 2025, despite a market cap of around $4 billion, indicating a high valuation relative to its financial performance [7] - The company is not profitable, trading at a price-to-sales multiple of nearly 40 based on last year's sales, which raises concerns about its valuation amidst ongoing risks [8] - Even with a potential revenue guidance of $177 million for the current year, the forward sales multiple remains high at 23 times, suggesting that investors may be overvaluing the stock [8] Competitive Landscape - Nvidia's entry into the voice AI market through its collaboration with Yum! Brands could significantly impact SoundHound's market share and growth potential [4][5] - The competitive landscape is crowded, with multiple companies offering similar voice AI services, making it challenging for SoundHound to achieve organic growth [6] - Investors are advised to reconsider their positions in SoundHound, as there may be more attractive AI investment opportunities available, such as Nvidia [9]

Company Performance - SoundHound AI, Inc. closed at $10.20, reflecting a -1.07% change from the previous day, underperforming the S&P 500 which gained 0.16% [1] - The company's shares increased by 9.33% over the past month, outperforming the Computer and Technology sector which declined by 5.94% and the S&P 500 which fell by 3.59% [1] Earnings Expectations - The upcoming earnings report for SoundHound AI, Inc. is anticipated to show an EPS of -$0.07, remaining consistent with the same quarter last year [2] - Revenue is expected to reach $30.21 million, representing a significant increase of 160.62% compared to the same quarter last year [2] Full Year Projections - For the full year, analysts project an EPS of -$0.16 and revenue of $165.76 million, indicating increases of +84.62% and +95.72% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for SoundHound AI, Inc. are important as they reflect short-term business trends, with positive changes indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system that can help investors make informed decisions [5] Zacks Rank and Industry Position - SoundHound AI, Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 4.72% in the past month [6] - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7]

Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules and factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than solely relying on statistical studies [1] - The individual combines quantitative analysis with classic fundamental analysis to uncover the true story of companies and their stocks, aiming to predict future performance [1] Experience and Background - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - The individual has authored two books on stock selection and analysis and has a passion for investor education, having conducted numerous seminars [1]

Core Insights - SoundHound AI experienced significant stock performance in 2024, rising 836% at its peak, but has since declined approximately 60% from its all-time high, raising questions about potential buying opportunities for new investors [1] - The company specializes in audio input for AI models, differentiating itself from other AI investments that focus on text inputs, indicating a substantial market opportunity [1] - Key industries for SoundHound include restaurants and automotive, with its software being utilized for automating drive-thru experiences and as digital assistants in vehicles [2] Financial Performance - In Q4, SoundHound's revenue increased by 101% year over year to $34.5 million, and for the full year, revenue rose 85% to $84.7 million, with expectations for continued acceleration in 2025 [3] - Management projects revenue for 2025 to be between $157 million and $177 million, suggesting nearly double the revenue compared to 2024 [3] - SoundHound's bookings backlog reached $1.2 billion, up 75% year over year, with an expected conversion of about $167 million into revenue during 2025 [7] Valuation Insights - The stock's valuation peaked at over 100 times sales, which was deemed unsustainable, and has since adjusted to 41 times sales, still considered high compared to typical software company valuations of 10 to 20 times sales [4] - If SoundHound doubles its revenue in 2025, it could align with a more typical valuation range for software companies, making the current price more attractive [5] Growth Potential - The company has significant growth potential, with expectations of acquiring new customers throughout 2025 and 2026, which could lead to substantial returns for investors if growth continues [8]

Group 1 - The company SoundHound AI has seen its stock price decline from $24 to approximately $10, indicating significant volatility in its market performance [1] - The author expresses a belief in the long-term potential of SoundHound AI, despite the current stock price drop [1] - The focus of the analysis is on fundamental analysis, valuation, and long-term growth potential, particularly in sectors like AI, fintech, and technology [1] Group 2 - The author has a beneficial long position in shares of PLTR, indicating a positive outlook on this company's stock [2] - The article reflects the author's personal opinions and is not influenced by any compensation from companies mentioned [2] - There is an emphasis on providing data-driven analysis to assist investors in making informed decisions regarding stock investments [1]

Core Viewpoint - Nvidia has significantly increased its valuation due to strong sales of its data center chips for AI, but it recently sold its stake in SoundHound AI, raising questions about the latter's future potential [1][2][16]. Company Overview - SoundHound AI specializes in conversational AI technologies, with over 30% of the top 20 quick-service restaurants and major car manufacturers utilizing its technology [4]. - The company has developed tools like Employee Assist for restaurants and Chat AI for automotive applications, enhancing customer service and user experience [5][6]. Financial Performance - SoundHound reported a record revenue of $84.7 million in 2024, an 85% increase from the previous year, which was a significant acceleration from a 47% growth in 2023 [9]. - The company diversified its revenue base through the acquisition of Amelia, reducing reliance on a single customer, which accounted for only 14% of total revenue in 2024 [10]. Future Growth Potential - SoundHound ended 2024 with a $1.2 billion order backlog, a 75% increase from the previous year, with expectations to convert this backlog into revenue over six years [11]. - The company projects revenue could reach up to $177 million in 2025, indicating a potential growth rate of 109% [11]. Profitability Concerns - Despite revenue growth, SoundHound reported a GAAP net loss of $350.6 million in 2024, a 294% increase from 2023, raising concerns about its financial sustainability [12]. - The non-GAAP net loss was $69.1 million, and with only $198 million in cash at year-end, the company faces challenges in maintaining its current spending rate [13]. Valuation Analysis - SoundHound's stock trades at a price-to-sales (P/S) ratio of 34.2, which is significantly higher than Nvidia's P/S ratio of 12.7, indicating a premium valuation compared to established AI leaders [14][15]. - The forward P/S ratio based on projected 2025 revenue is 17.9, still above Nvidia's, suggesting that SoundHound's valuation may limit its upside potential [15].

Core Viewpoint - The Schall Law Firm is investigating claims against SoundHound AI, Inc. for potential violations of securities laws, particularly concerning misleading statements and undisclosed information [1][2]. Group 1: Investigation Details - The investigation centers on whether SoundHound issued false or misleading statements and failed to disclose critical information to investors [2]. - SoundHound filed a Notification of Late Filing on Form 12b-25 with the SEC on March 4, 2025, indicating it could not file its 10-K annual report on time due to accounting complexities [2]. - The company identified material weaknesses in its internal control over financial reporting, which persisted as of December 31, 2024 [2]. Group 2: Company Response - SoundHound expects to file its Form 10-K within the fifteen-day period allowed under Rule 12b-25, no later than March 18, 2025 [2].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving SoundHound AI, Inc. and its officers or directors [1][2] Group 1: Company Disclosure - On March 4, 2025, SoundHound announced it would not be able to file its annual report for 2024 on time due to complexities in accounting for prior acquisitions [2] - The company identified material weaknesses in its internal control over financial reporting, which contributed to the delay [2] Group 2: Market Reaction - Following the announcement, SoundHound's stock price decreased by $0.61, or 5.86%, closing at $9.72 per share on March 4, 2025 [2] Group 3: Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [3]

Core Insights - SoundHound AI's stock experienced a notable increase, gaining 6.9% by market close and peaking at 12.2% earlier in the day, amidst a positive performance from the S&P 500 and Nasdaq Composite [1] Market Penetration - SoundHound is making significant progress in various sectors, particularly in the automotive industry, where it has replaced competitors like Nuance/Cerence and now serves over 20 automotive brands, including a key integration with OpenAI in Stellantis vehicles [2] - In the food industry, SoundHound collaborates with 7 of the top 20 quick-service restaurants and sees potential in sectors like healthcare and financial services for future growth [3] Financial Position - The company holds $200 million in cash, has no debt, and anticipates achieving positive EBITDA by year-end, indicating a strong financial position for a technology leader [4] Competitive Landscape - SoundHound operates in a highly competitive environment with the risk of new entrants and evolving product offerings from large tech companies. Despite management outlining a path to profitability, unforeseen challenges may arise [5] - Notably, Nvidia recently divested its entire stake in SoundHound, adding to the uncertainties surrounding the company [5]