Why SoundHound AI Stock Plunged 25% Lower in March

Core Viewpoint - SoundHound AI's stock has experienced significant declines, dropping 25% in March 2025, following a trend of negative movements in previous months, attributed to the fading of meme-stock hype from late 2024 [1][2]. Stock Performance - The share price of SoundHound AI started March at $10.82, down from$14.15 in February, $19.84 at the end of 2024, and$23.23 at its peak during the holiday season [2]. - Despite the price drops, the stock does not appear cheap, trading at $4.50 in early October, indicating a volatile market history [3]. Business Fundamentals - SoundHound AI has a strong business foundation with its AI-driven voice recognition platform, which is utilized in various applications such as in-car systems, drive-thru ordering, and phone menus, addressing a large and expanding market [4]. - The company has a robust order backlog, but it may take years to convert this into significant revenue and profits, with the stock currently trading at a high valuation of 39 times trailing sales [5]. Investment Sentiment - There is confidence in SoundHound AI's ability to monetize long-term contracts and expand its client base, although the current investment position is considered small and risky [6].