SoundHound Just Acquired Interactions. Should You Buy, Sell, or Hold SOUN Stock Here?

Core Insights - SoundHound (SOUN) has confirmed the acquisition of Interactions for $60 million in cash, which has led to a more than 2% decline in its shares [1] - The acquisition is strategically bullish for SOUN stock, expanding its enterprise footprint and enhancing its leadership in agentic AI [3][4] - SoundHound's revenue has more than tripled year-over-year to a record $43 million in fiscal Q2, indicating strong growth potential [5][6] Company Developments - The acquisition of Interactions adds over 130 patents to SoundHound's portfolio, increasing its total to over 400 patents, which strengthens its intellectual property position [4] - The deal is expected to unlock immediate cross-sell and upsell opportunities with Fortune 100 clients across various sectors, including retail, insurance, and automotive [3][4] - SoundHound is experiencing rapid adoption across sectors like retail, healthcare, and automotive, processing nearly 3 billion conversational queries per quarter [6] Market Position - Despite a high price-sales (P/S) ratio of about 68x, analysts like H.C. Wainwright's Scott Buck maintain a bullish outlook on SoundHound due to accelerating revenue growth and a strong liquidity position [5] - The market response to the acquisition announcement has been muted, but the long-term implications are viewed positively by some analysts [3][7]