SoundHound AI Just Announced a Tasty Deal With Red Lobster. Does That Make SOUN Stock a Buy?

Core Insights - SoundHound (SOUN) stock surged over 10% following a partnership with Red Lobster to implement automated phone ordering, enhancing customer experience and reducing staff workload [1][3] - The stock has increased approximately 180% from its year-to-date low in April [2] - The collaboration with Red Lobster serves as a validation of SoundHound's enterprise strategy and voice AI technology, showcasing its scalability in a commercial environment [3][4] Company Performance - SoundHound's solution is specifically trained on Red Lobster's full menu, ensuring efficient handling of calls even during peak hours [4] - The partnership is expected to attract other large restaurant chains looking to automate operations, thereby improving SoundHound's market visibility and potential for long-term growth [4] Financial Metrics - Despite a high valuation at 78x sales, a significant 217% year-over-year revenue increase in the latest quarter supports the case for long-term investment [5] - The company holds nearly $250 million in cash with no debt, providing substantial resources for aggressive expansion across various industries [6] Market Sentiment - Wall Street analysts maintain a "Moderate Buy" consensus rating on SOUN shares, although the mean target price of approximately $15.36 indicates a potential downside of nearly 20% from current levels [7]