Group 1 - The article discusses the initiation of coverage for Soundhound AI, Inc. (NASDAQ: SOUN) with a "Hold" rating, indicating a cautious outlook on the stock [1] - The analysis highlights the company's expansion efforts as a key factor in the investment thesis [1] - The author emphasizes the importance of filtering vast amounts of information to identify critical investment ideas [1] Group 2 - The article mentions that the chief investment analyst operates a group called Beyond the Wall Investing, which provides insights similar to those used by institutional market participants [1] - There is a promotion for a subscription service that offers access to high-quality analysis of Wall Street buying and selling ideas [1]

Earnings and Financial Performance - SoundHound AI (SOUN) is scheduled to report its third-quarter 2024 results on Nov 12, with a Zacks Consensus Estimate for revenues of $23.68 million, indicating a 78.47% growth from the year-ago quarter [1] - The consensus mark for loss is pegged at 8 cents per share, unchanged over the past 60 days, compared to a loss of 9 cents per share in the year-ago quarter [1] - SOUN's earnings beat the Zacks Consensus Estimate in one of the trailing four quarters, missed it twice, and met it once, with an average negative surprise of 5% [2] Growth Drivers and Market Opportunities - SOUN offers conversational intelligence through Voice AI solutions in 25 languages, benefiting from the growing demand for Generative AI and large language models [3] - The company's AI-driven customer service solutions, such as Smart Ordering, Employee Assist, and Smart Answering, cater to the restaurant and auto sectors, contributing to revenue growth [4] - Smart Answering has opened a massive market in customer service, boosting top-line growth [5] - SOUN had a $723 million cumulative subscriptions and bookings backlog at the end of Q2 2024, roughly doubling year-over-year, with an average duration of seven years [6] Stock Performance and Valuation - Year-to-date, SOUN shares have surged 227.8%, outperforming the broader Zacks Computer & Technology sector (31.1%) and the Zacks IT Services industry (14.2%) [7] - SOUN's forward 12-month Price/Sales ratio is 17.58, higher than its median of 15.33 and the Zacks Computer & Technology sector's 6.41 [8] Market Expansion and Strategic Moves - SOUN's addressable market is worth over $140 billion, spanning automotive, restaurants, customer service, entertainment, Smart TVs, and IoT devices [10] - The company has more than 270 patents, with over 155 granted and more than 115 pending [10] - In Q2 2024, SOUN's AI services were employed by existing restaurant customers like Jersey Mike's and new clients, including Beef 'O' Brady's, which launched SOUN's voice AI ordering system across corporate locations [11] - The global light vehicle auto market TAM is expected to grow from 88 million to 95 million units by 2028, while the restaurant market TAM is projected to grow from $3.3 trillion to $4.4 trillion by 2028 [12] - SOUN has expanded its footprint in the automotive industry by integrating its SoundHound Chat AI voice assistant with ChatGPT into vehicles across 11 European markets [13] - The company signed a new contract in Q2 2024, becoming the first to introduce ChatGPT-style capabilities to in-vehicle voice assistants in Latin America [14] - SOUN's acquisition of SYNQ3 in early 2024 strengthened its presence in the restaurant sector, while the acquisition of Allset's key assets enhanced its Voice AI capabilities [15] - The acquisition of conversational AI leader Amelia is expected to create a combined clientele of roughly 200 marquee customers, with earnings accretion anticipated by the second half of 2025 [16] Conclusion - SOUN is well-positioned to benefit from the strong TAM of global automotive and restaurant markets, driven by its innovative portfolio [17]

Stock Performance - SoundHound AI shares surged 22.1% in the last trading session, closing at $6.95, driven by higher-than-usual trading volume [1] - The stock has gained 22.9% over the past four weeks [1] - SAIC shares declined 0.2% in the last trading session, closing at $148.94, with a 4.1% return over the past month [3] Financial Expectations - SoundHound AI is expected to post a quarterly loss of $0.08 per share, representing a year-over-year improvement of 11.1% [2] - Revenue for SoundHound AI is projected at $23.68 million, a 78.5% increase from the year-ago quarter [2] - SAIC's consensus EPS estimate for the upcoming report remains unchanged at $2.17, reflecting a 4.4% decline from the previous year [4] Business Development - SoundHound AI is expanding its portfolio and client base, offering Voice AI solutions in multiple languages for cloud and device-based systems [1] Industry Context - SoundHound AI operates in the Zacks Computers - IT Services industry, alongside SAIC [3] - SAIC currently holds a Zacks Rank of 2 (Buy), while SoundHound AI has a Zacks Rank of 3 (Hold) [3][4]

Core Viewpoint - SoundHound AI's stock experienced a significant increase of 22.1% in a single trading day, driven largely by social media influence rather than fundamental news or earnings reports [1][2]. Group 1: Stock Performance and Market Activity - SoundHound AI's shares started the day with a modest gain and closed with a 22.1% increase [1]. - The stock had no specific news or filings with the SEC on that day, and the upcoming earnings report is anticipated [2]. - The stock is trending on social media platforms, particularly Reddit, where influencers are promoting heavy buying ahead of the earnings report [4]. Group 2: Market Characteristics - The company has a market capitalization of $2.5 billion, indicating it is a relatively small stock [5]. - There is a significant short-selling interest in SoundHound AI, with 24% of the total shares sold short, which could lead to a short-squeeze [4][5]. - Trading volume for SoundHound AI reached 69 million shares, more than triple the average over the past month, reflecting heightened interest [5]. Group 3: Business Fundamentals - SoundHound AI is recognized for its strong long-term business prospects, particularly in the AI tools for audio interpretation and voice controls sector [6][7]. - The company has a growing client list that includes major car manufacturers, restaurants, and consumer electronics companies [7]. - The backlog of unfilled orders and subscription contracts was reported at $723 million, expected to increase in the upcoming earnings report [7]. Group 4: Investment Sentiment - While there is agreement that SoundHound AI is a good investment, the current market conditions are not seen as the right time to buy the stock due to potential price volatility [8][9]. - The focus is on the upcoming Q3 report, particularly regarding the growth of the order backlog, rather than immediate stock purchases [9].

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. ...