SoundHound AI (SOUN -9.63%) stock shot nearly 1,000% higher over the last year, with the largest portion of the gain occurring in November and December 2024. Its high-profile investors, client list, and innovation in so-called "next generation" artificial intelligence (AI) have made it popular among investors.Incredibly, its price-to-sales (P/S) ratio, which was just below 100 at the time of this writing, has not deterred investors despite being more than 30 times the S&P 500's average sales multiple of 3. ...

SoundHound AI (SOUN 2.28%) is one of the hottest stocks in the world, up roughly 800% over the past year thanks to surging demand and interest surrounding its conversational artificial intelligence (AI) technologies. These offerings are already being used at significant scale by customers in the automotive and restaurant industries, and the company is looking to expand its position in other categories, including healthcare and financial services.In last year's third quarter, the business saw its revenue inc ...

Company Overview - SoundHound has diversified and grown its customer base while developing its proprietary voice AI model [3] - The company has made several accretive acquisitions and built an impressive customer list [4] - SoundHound has achieved a leading position in voice-enabled AI systems outside big tech, particularly in automotive and quick-serve restaurant (QSR) verticals [6] - The acquisition of Amelia has boosted SoundHound's enterprise platforms for customer service and employee-facing IT AI applications [7] - SoundHound has been developing voice AI technology since 2005 and released its Houndify platform in 2015 [8] - The company has built its proprietary voice AI model, Polaris, based on decades of experience and billions of conversations [9][10] Financial Performance - SoundHound reported 89% revenue growth in its mid-November third-quarter earnings report [11] - The company increased its full-year revenue guidance for 2024 to $82 million-$85 million and for 2025 to $155 million-$175 million [11] - Operating losses more than doubled from $14 million to $33 million last quarter, but this is manageable given the company's top-line growth [18] Market Position and Valuation - SoundHound's stock has surged 400% in two months, reaching a market cap of $9 billion [16] - The stock's valuation is 45 times next year's sales, anticipating extremely high growth for many years [16] - The rapid price increase appears to be driven by a mania in next-generation technology stocks rather than fundamentals [19] - Sell-side analysts have increased their share-price targets as the stock has risen, but this may follow rather than lead the price [20] Industry Context - Smaller AI stocks, especially those backed by Nvidia, have seen parabolic growth at the end of 2024 [5] - SoundHound has an early lead in voice AI, but large tech giants may enter the sector if it proves attractive [13] - The company's proprietary data and model give it a competitive advantage in the AI age [10] Customer and Vertical Success - SoundHound has secured seven of the top 20 QSR brands, including Chipotle, for phone and drive-through ordering [6] - The company's voice AI is embedded in many leading auto brands, including those owned by Stellantis and four major EV manufacturers [6]

Company Overview - SoundHound AI specializes in voice-based AI solutions, including drive-thru order processing and hands-free car feature activation [10] - The company monetized its technology to the tune of $25 million during the quarter ending in September, up 89% year over year [1] - SoundHound AI is positioned to capture its fair share of the growing speech recognition market [7] Industry Growth - The global speech recognition industry is poised to grow at an annualized pace of 17% through 2032 [2] - Technology stocks, including those in AI, are driving significant social, economic, and cultural changes [3] Competitive Landscape - Major tech companies like Microsoft, Google, and OpenAI have the potential to develop similar voice-based AI solutions [4] - SoundHound AI's technology, while impressive, lacks uniqueness, which could be a concern for long-term growth [17] Financials and Valuation - SoundHound AI shares are trading at roughly 100 times its trailing-12-month revenue, compared to the S&P 500's price-to-sales ratio of 3.1 [12] - The company continues to issue new stock to raise funds, diluting existing shareholders [18] - Analysts' consensus price target of $14.36 is 40% below the current share price [18] Market Perception - SoundHound AI's stock has seen a 300% price spike since late October, indicating investor optimism [9] - The company is viewed as an underappreciated pure-play AI company with potential for accelerated growth and new market prospects [6] Future Prospects - SoundHound AI could potentially develop new marketable technologies with wider defensive moats [13] - The company's top line could grow more than 30-fold and still be priced in line with its peers [14]

With today's gains, SoundHound AI stock is now up more than 1,000% in 2024.SoundHound AI (SOUN 17.61%) stock is posting big gains in Thursday's trading. The company's share price was up 17.9% as of 12:30 p.m. ET.SoundHound AI stock is surging amid a day of strong momentum for meme stocks. Speculative growth plays are seeing a strong rebound on the heels of recent valuation volatility, and the conversational artificial intelligence (AI) is also getting a boost from bullish analyst coverage.SoundHound AI stoc ...

Valuation and Investment Perspective - SoundHound's forward price-to-sales (P/S) ratio is nearly 90, indicating a high valuation despite the company not being profitable yet [1] - The stock is considered an aggressive investment, with potential for a profitable future as use cases grow [1] - The company's scalable platform is expected to allow revenue, adjusted EBITDA, and earnings to catch up to the share price over time [6] Stock Performance - SoundHound AI stock has more than quadrupled over the last three months and is up by 860% year to date [3] - Wall Street analyst Scott Buck maintains a "buy" rating and raised the price target from $8 to $26 per share, implying a 27% upside [7] Market Expansion and Revenue Growth - The market for voice technology has expanded from customer service sectors to automotive use cases, integrating cloud-based large language models into vehicles [4] - Recent acquisitions are expected to significantly increase the scope of SoundHound's business in retail, healthcare, and financial services [5] - SoundHound management has increased revenue guidance for this year and estimates sales will approximately double in 2025 [8] Industry Demand - Demand for voice generative AI is expected to continue growing across multiple sectors [5]

SoundHound AI (SOUN -0.93%) has simply taken off in the past couple of years. Shares of the voice artificial intelligence (AI) solutions provider shot up a phenomenal 1,940% during this period thanks to the growing AI craze, an investment in the company by Nvidia, and solid results from the company in recent quarters.So, if you bought just $100 worth of SoundHound AI stock two years ago, your investment would now be worth an impressive $2,000. The stock witnessed wild swings during this period, though it wo ...

SoundHound AI (SOUN 15.38%) is likely one of the cheapest artificial intelligence (AI) stocks available (at least on a dollar-per-share basis). While most brokerages offer fractional shares, not all do, and that can limit what stocks investors can buy.At around $20, SoundHound is a fairly affordable investment for most people, but the stock is far from cheap. How can a stock be affordable and expensive at the same time? It's all about valuation.SoundHound's stock has been on fire latelySoundHound AI is one ...

Core Insights - SoundHound AI stock experienced significant volatility, initially rising over 40% before settling with a weekly gain of approximately 10.3%, resulting in a year-to-date return of 780% [1][2] Financial Performance - The company raised its revenue guidance for 2024, now projecting full-year revenue between $82 million and $85 million, up from a previous midpoint of $71 million [2] - For 2025, SoundHound anticipates sales in the range of $155 million to $175 million [2] Analyst Insights - A bullish report from Wedbush analyst Dan Ives increased the price target for SoundHound from $10 to $22 per share, highlighting the company's potential as an underappreciated pure-play AI firm [2][4] - Ives believes SoundHound will expand its total addressable market and growth trajectory by 2025, particularly in new verticals like healthcare [2][4] Strategic Moves - SoundHound completed the acquisition of enterprise AI software company Amelia in the third quarter, which is expected to enhance its capabilities in enterprise conversational AI, especially in the healthcare sector [3][4] Valuation Metrics - Despite the stock's significant price increase, SoundHound remains unprofitable, with a forward price-to-sales (P/S) ratio of approximately 83, indicating a high level of risk for investors [4]

SoundHound AI (SOUN -7.34%) stock is seeing big sell-offs in Thursday's trading. The company's share price was down 12.3% as of 11:30 a.m. ET. Meanwhile, the S&P 500 index was up 0.6%, and the Nasdaq Composite index was up 0.7%.Despite being down big as of this writing, SoundHound AI stock actually started the day with big gains. The conversational artificial intelligence (AI) specialist's share price had been up as much as 14.1% earlier in the session.Why SoundHound AI stock is highly volatile todaySoundHo ...