Stock Performance and Market Sentiment - SoundHound AI stock gained an incredible 835% in 2024, but is currently 46% off its all-time high from that year [1][2] - The stock has been highly volatile since its IPO in 2022, with a low of $0.97 per share in late 2022 [2] - Investors are questioning whether the stock can reverse its recent downturn and return to 2024 levels [3] Industry and Technology - SoundHound AI operates in the speech recognition subset of AI, which is seeing increased mainstream adoption in areas like drive-thru ordering, customer service, and automotive applications [4] - The speech recognition market is projected to more than double from 2024 to over $16 billion by 2030 [5] - The company demonstrated new in-vehicle voice assistant technology at CES, enabling users to order takeout through their car's communication system [7] Business Fundamentals and Financials - SoundHound AI has significantly improved its financial position, with $136 million in cash and $70 million in current liabilities as of Q3 2024, compared to $9 million in cash and $38 million in liabilities at the end of 2022 [8] - Revenue is growing rapidly, with $25 million in Q3 2024 and a 12-month total of $67 million [10] - Management forecasts $85 million in sales for 2024 and $155-175 million for 2025 [10] - The company has diversified its customer base, with its largest customer accounting for just 12% of Q3 2024 revenue, down from 72% in the prior-year period [6] Valuation and Growth Prospects - SoundHound AI currently has a market cap of $5.2 billion, trading at 64x 2024 sales and 36x the midpoint of 2025 sales guidance [12] - Historically, the stock has traded at an average of 20x sales, which would imply a 35% decline from current levels based on 2025 sales guidance [13] - Sales are expected to double in 2025 but growth is projected to slow, with analysts estimating $200 million in sales for 2026 [14] - The company's impressive technology and growth potential are offset by its high valuation, making a repeat of 2024's massive gains unlikely [14]

SoundHound AI, Inc. (SOUN) closed the latest trading day at $14.23, indicating a +1.14% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 0.92%. At the same time, the Dow added 0.31%, and the tech-heavy Nasdaq gained 2.03%.The company's stock has dropped by 37.96% in the past month, falling short of the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.81%.Analysts and investors alike will be keeping a close eye on the perfo ...

Stock Performance - SoundHound AI (SOUN) stock tumbled 11 2% as of 4 30 p m ET on Monday with an intraday low of 12 9% earlier in the day [1] - The stock has declined nearly 30% since its presentation at CES 2025 in early January [1] Market Context - The S&P 500 and Nasdaq composite lost 1 5% and 3 1% respectively on the same day [1] - SoundHound's stock decline was exacerbated by broader market concerns related to the entry of DeepSeek a disruptive Chinese AI company [1][3] CES 2025 Performance - SoundHound's presentation at CES 2025 was highly anticipated but failed to impress investors [2] - The demo of its in-car voice "commerce" platform was criticized for providing marginal value while increasing costs and power consumption [2] - This underwhelming performance contributed to the stock's struggles post-event [2] Impact of DeepSeek - DeepSeek a new Chinese AI entrant has caused alarm in the market due to its competitive AI model which rivals those of OpenAI and Amazon [3] - Despite lacking the hardware and funding of its U S counterparts DeepSeek's innovation has raised concerns about weakening demand for U S hardware and potential technological leapfrogging [3] - This news led to a sharp decline in SoundHound and other AI stocks [3]

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 ...