Core Viewpoint - SoundHound AI is positioned for significant growth, with analysts projecting a price target of $9.50, indicating a potential upside of around 60% over the next year [2][10]. Company Overview - SoundHound AI specializes in AI technology for sound recognition and processing, finding commercial success primarily in the restaurant and automotive industries [3][5]. Industry Applications - In the restaurant sector, SoundHound's AI is enhancing operational efficiency by managing drive-thru and mobile orders, often outperforming human staff [4]. - In the automotive sector, SoundHound's technology is integrated with generative AI models to improve driving assistants, with Stellantis being a notable client [5]. Financial Performance - For Q2, SoundHound reported revenue of $13.5 million, reflecting a year-over-year increase of 54% [6]. - The company has a revenue backlog of $723 million, indicating strong demand for its technology, with expectations to convert some of this backlog into revenue by 2025, projecting revenues to exceed $150 million [7]. Valuation Insights - Currently, SoundHound's stock trades at a price-to-sales (P/S) ratio of 30 based on trailing data [8]. - If management's 2025 revenue projection of $150 million is realized, the P/S ratio would drop to 11, suggesting a more attractive valuation [9]. Investment Potential - If management meets its revenue expectations, SoundHound AI could represent a strong investment opportunity, supporting the analyst's price target of $9.50 [10].

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on SoundHound AI, Inc. (SOUN), and suggests that while the average brokerage recommendation (ABR) indicates a strong buy, investors should be cautious and validate this information with other tools like the Zacks Rank [1][2][12]. Group 1: Brokerage Recommendations - SoundHound AI has an average brokerage recommendation (ABR) of 1.33, which is between Strong Buy and Buy, with 83.3% of the recommendations being Strong Buy from six brokerage firms [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high potential for price appreciation [3][8]. - The vested interests of brokerage firms can lead to a bias in their analysts' ratings, resulting in a disproportionate number of Strong Buy recommendations compared to Strong Sell [4][5]. Group 2: Zacks Rank Comparison - The Zacks Rank is a proprietary stock rating tool that categorizes stocks from 1 (Strong Buy) to 5 (Strong Sell) and is based on earnings estimate revisions, which have shown a strong correlation with near-term stock price movements [6][9]. - The Zacks Rank is distinct from the ABR, as it is a quantitative model that reflects timely changes in earnings estimates, while the ABR may not always be up-to-date [7][10]. - For SoundHound AI, the Zacks Consensus Estimate for the current year remains unchanged at -$0.36, leading to a Zacks Rank of 3 (Hold), suggesting a cautious approach despite the favorable ABR [11][12].

Core Viewpoint - Investing in emerging growth stocks can yield significant long-term profits, exemplified by ServiceNow's remarkable growth since its IPO [1] Company Overview: SoundHound AI - SoundHound AI is positioned in the voice recognition market, which is projected to grow from $7 billion in 2024 to nearly $16 billion by 2030 [4] - The company's technology is already utilized by notable brands such as White Castle, Applebee's, Hyundai, and Kia, and it holds 270 patents granted or pending [5] Financial Performance - SoundHound's financial health has improved, reporting $200 million in cash and no long-term debt, a significant improvement from less than $10 million in cash and $35 million in debt at the beginning of 2023 [6] - Revenue for the last quarter reached $13.5 million, reflecting a 54% year-over-year growth, with forecasts of over $80 million in sales for 2024 and $150 million for 2025 [7] Valuation and Market Sentiment - The stock is currently trading at 26 times sales, which is considered high, but this ratio drops to 12.5 based on the 2025 sales forecast, indicating strong growth potential [9] - Wall Street analysts are optimistic, with six out of seven recommending "buy" or "strong buy," and an average price target of $7.79, representing a 50% upside from the current share price [10]

Company Performance - SoundHound AI, Inc. (SOUN) closed at $6.01, reflecting a -1.8% change from the previous day, underperforming the S&P 500 which gained 0.16% [1] - Over the past month, shares of SoundHound AI have increased by 31.33%, significantly outperforming the Computer and Technology sector's gain of 1.87% and the S&P 500's gain of 1.67% [1] Upcoming Earnings - The company's earnings report is scheduled for November 12, 2024, with an expected EPS of -$0.08, representing an 11.11% increase from the same quarter last year [2] - Revenue is anticipated to be $23.68 million, indicating a substantial 78.47% increase compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, Zacks Consensus Estimates predict an EPS of -$0.36 and revenue of $82.59 million, reflecting changes of +5.26% and +80.05% respectively from the previous year [3] Analyst Estimates - Recent adjustments to analyst estimates for SoundHound AI are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which incorporates these estimate changes, provides actionable ratings for investors [5] Zacks Rank and Industry Performance - SoundHound AI currently holds a Zacks Rank of 3 (Hold), with the consensus EPS estimate remaining unchanged over the last 30 days [6] - The Computers - IT Services industry, part of the Computer and Technology sector, ranks in the top 19% of all industries according to the Zacks Industry Rank [7]

SoundHound AI, Inc. (SOUN) closed the most recent trading day at $5.31, moving -1.48% from the previous trading session. This move lagged the S&P 500's daily loss of 0.05%. On the other hand, the Dow registered a loss of 0.02%, and the technology-centric Nasdaq increased by 0.18%.The company's stock has climbed by 10.45% in the past month, exceeding the Computer and Technology sector's gain of 3.5% and the S&P 500's gain of 2.76%.Market participants will be closely following the financial results of SoundHo ...

SoundHound AI, Inc. (SOUN) closed the latest trading day at $5.25, indicating a -1.13% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%. Heading into today, shares of the company had gained 10.63% over the past month, outpacing the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48% in that time. The upcoming earnings release of SoundHound AI, Inc. ...

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about SoundHound AI, Inc. (SOUN) . SoundHound AI currently has an average brokerage recommendation ( ...

This growing company hopes to capture a $140 billion addressable market. The race is on for companies to entrench themselves as leaders in artificial intelligence (AI), arguably the most significant technological leap since the internet's early years in the 1990s. This goes far beyond the screen you're reading this on. SoundHound AI (SOUN 5.70%) is changing how we speak to technology and how it talks back. This company, not even worth $2 billion today, wants to dominate a market it estimates is worth $140 b ...

Growth Potential and Stock Performance - SoundHound AI's stock has more than doubled in value this year, but it is down 8% over the past six months as market excitement has cooled [1][2] - The company has a market cap of $1.7 billion, indicating potential upside if its business continues to grow and profitability improves [2] Financial Performance and Profitability - SoundHound AI's revenue grew 54% year-over-year to $13.5 million in Q2, but its net loss increased by 60% to $37.3 million [3] - The company's profit margin trend shows no clear path to breaking even, raising concerns about its financial sustainability [3][4] Share Dilution and Cash Flow - SoundHound AI's share count has increased significantly in recent years due to the need for capital to fund operations and growth [5] - The company has experienced an 83.7% increase in shares outstanding over the past year, with operating cash outflows of $74.5 million in the last 12 months [6] - Continued cash burn and potential for further dilution could put downward pressure on the stock price [6] Competitive Landscape and Market Sentiment - SoundHound AI faces intense competition in the AI voice services market, with no clear sustainable competitive advantage established [7] - High short interest in the stock indicates significant investor skepticism, which could lead to increased volatility and downward pressure on the stock price [7][8] Investor Sentiment and External Factors - Nvidia's investment in SoundHound AI has contributed to the stock's popularity and performance, but the company's financial challenges remain a concern [9] - Despite the hype, the company's ability to improve its financials is uncertain, especially with large tech companies entering the voice AI space [10]

Curious about SoundHound AI's long-term growth potential? Find out which metric you should track. Artificial intelligence (AI) expert SoundHound AI (SOUN 4.54%) has about two decades of operating history and technology development under its belt. At the same time, it's a young company on the stock market. SoundHound AI entered the public stock market by merging with a special purpose acquisition company (SPAC) in the spring of 2022. Ten earnings reports later, the maker of AI-powered voice control systems b ...