Key Takeaways SoundHound to expand into retail with the upcoming debut launch of its AI-powered Sales Assist.SOUN targets telecom upsell gains as it leverages Polaris automatic speech recognition technology.SoundHound trades at a premium valuation amid strong AI competition with close market peers.SoundHound AI, Inc. (SOUN) has turned heads by announcing the launch of Sales Assist, a voice-powered AI agent for retail at the Mobile World Congress 2026. SOUN stock jumped 6.8% during yesterday’s trading hours ...

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about SoundHound AI, Inc. (SOUN) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.SoundHound AI currently has an ...

Core Insights - SoundHound AI, Inc. (SOUN) is set to report its fourth-quarter 2025 results on February 26, 2026, after market close [1] Financial Performance - In the last reported quarter, SoundHound achieved a revenue increase of 68% year over year, reaching $42 million, surpassing the Zacks Consensus Estimate by 4.9% [2] - The company raised its 2025 revenue outlook to a range of $165 million to $180 million, indicating confidence in sustained growth [2] - Non-GAAP gross margin was reported at 59.3%, supported by operational efficiencies and proprietary model usage [3] - The company reported a non-GAAP net loss of 3 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 4 cents [3] Future Estimates - The Zacks Consensus Estimate for the fourth-quarter bottom line remains unchanged at a loss of 2 cents per share, compared to a loss of 69 cents per share a year ago [6] - For 2026, revenues are expected to increase by 38.3% year over year to $232.2 million, with an anticipated improvement in the bottom line to a loss of 6 cents per share from an estimated loss of 13 cents for 2025 [7] Market Position and Competition - SoundHound operates in a competitive voice and conversational AI market, facing challenges from established players like Nuance Communications, Cerence Inc., and NICE Ltd. [25] - The competitive landscape is characterized by pricing and platform competition, particularly from Nuance's enterprise and healthcare AI solutions [25] Valuation and Investment Outlook - SOUN shares are currently considered slightly overvalued, trading at a forward 12-month price-to-sales (P/S) ratio of 13.73, higher than the Zacks Computers - IT Services industry average [26] - Despite strong revenue momentum and a solid liquidity position of $269 million in cash with no debt, ongoing automotive market softness and elevated investments may pressure near-term profitability [27][28]

Core Insights - SoundHound AI stock is experiencing upward movement, attributed to the launch of its new AI-powered tool, Sales Assist, aimed at enhancing customer interactions in telecom retail [1][2]. Group 1: Product Launch and Market Impact - Sales Assist is a voice-powered tool designed to analyze customer conversations and provide instant recommendations to store staff, targeting telecom retailers to streamline sales processes [2][3]. - The product aims to reduce transaction times and increase revenue per customer by offering features like upgrade eligibility checks and promotional suggestions [2][3]. Group 2: Enterprise Growth and AI Expansion - SoundHound's AI platform supports numerous large enterprise deployments, processing nearly 30 million AI-driven customer interactions in 2025, indicating strong demand for AI solutions in retail and telecom sectors [4]. - The new offering is expected to enhance SoundHound's presence in Europe and boost recurring software revenue as more retailers adopt AI for compliance and training efficiencies [4]. Group 3: Stock Performance and Technical Analysis - SoundHound AI is currently trading 5.2% below its 20-day simple moving average and 20.6% below its 100-day simple moving average, reflecting short-term weakness despite recent gains [5]. - Over the past year, shares have decreased by 12.73%, positioning them closer to 52-week lows [5]. - The RSI is at 37.46, indicating neutral territory, while the MACD shows a bullish crossover, suggesting potential for recovery under favorable market conditions [6]. Group 4: Market Sentiment and Price Action - SoundHound AI has a strong Momentum score of 9.31, although its price trends in the short, medium, and long term are flagged as negative [7]. - As of the latest data, SoundHound AI shares increased by 6.90% to $8.36, with key resistance at $9.00 and support at $7.00 [8].

Core Insights - SoundHound AI, Inc. has launched Sales Assist, a voice-powered AI agent for retail, which will debut at Mobile World Congress 2026 [1] - The Sales Assist agent is designed to enhance in-store customer interactions by providing real-time AI-driven recommendations to staff [2][4] - The technology aims to streamline sales processes, reduce wait times for customers, and improve overall sales efficiency [3][4] Product Features - Sales Assist provides instant, data-driven recommendations during customer conversations, helping staff with upgrades, bundles, and compliance disclosures [2][4] - The AI operates in noisy retail environments with minimal latency, utilizing SoundHound's proprietary Polaris automatic speech recognition technology [4] - The system can access various databases securely, enabling it to check upgrade eligibility, retrieve account data, and suggest trade-in promotions [10] Market Impact - SoundHound processed nearly 30 million AI customer interactions in telecom and retail sectors globally in 2025, indicating strong market demand [9] - The launch at MWC 2026 highlights SoundHound's growing momentum in the European market [11] - The Sales Assist agent is expected to increase revenue per customer, shorten sales cycles, and ensure consistent sales practices across locations [4] Company Overview - SoundHound AI is recognized as a global leader in voice and conversational AI, providing solutions across various industries including retail, financial services, and healthcare [12] - The company’s technology enables billions of AI interactions annually for leading brands, showcasing its extensive reach and capabilities [12]

Key Takeaways SoundHound AI reported sequential GAAP and non-GAAP gross margin gains in Q3 2025.SOUN cut cloud costs by shifting to proprietary models and integrating acquisitions.Polaris model lowers per-query costs as volumes rise, boosting operating leverage.For investors tracking SoundHound AI, Inc. (SOUN) , expanding gross margins have become a key data point in assessing whether the stock is entering a more durable phase of its growth story. In third-quarter 2025, the company reported sequential impro ...

Core Viewpoint - SoundHound AI (SOUN) has experienced a significant decline in stock value, dropping 51% over the past year and 13% last week, raising concerns about its path to profitability ahead of its upcoming earnings report on February 26, 2026 [1]. Performance Summary - SoundHound's stock fell 12.85% this week, closing at $7.46, while the S&P 500 gained 11.81% over the same period [1]. - The company's year-to-date decline stands at 25.18%, contrasting with the S&P 500's flat performance [1]. - SoundHound has a market cap of $3.13 billion with trailing twelve-month revenue of $148.4 million, resulting in a price-to-sales ratio of 21x, indicating high growth expectations [1]. Storyline One: Earnings Uncertainty - The upcoming Q4 2025 earnings report is expected to show sales of $53.88 million, up from $42.05 million in the previous quarter, with an adjusted EPS forecast of -$0.10 [1]. - If the company meets or misses these expectations, further selling pressure may occur [1]. Storyline Two: Insider Selling - On December 22, 2025, six executives sold shares at $11.2769, including CEO Keyvan Mohajer, who sold 144,326 shares for approximately $1.6 million [1]. - There have been no open market buys recorded in the past three months, with 10 sales, indicating a cautious sentiment among insiders [1]. Storyline Three: Competitive Valuation - SoundHound competes with larger tech companies like Alphabet, which trades at 9.3x sales with a profit margin of 32.8%, while SoundHound's valuation assumes it can maintain its niche against competitors [1]. - Wall Street estimates a -$55 million EBITDA for 2026, necessitating significant margin improvements or scale to achieve profitability [1]. - Analysts have set an average price target of $16.31, suggesting over 100% upside potential if the company can execute effectively [1].

Core Viewpoint - SoundHound AI presents a significant investment opportunity with its voice AI technology already integrated into various everyday applications, despite a challenging stock performance this year [1][2]. Company Overview - SoundHound AI's current stock price is $7.46, with a market capitalization of $3.1 billion. The stock has seen a year-to-date decline of 24% and is down approximately 65% from its 52-week high of $22.17 [3][2]. Market Potential - The company identifies a total addressable market of $140 billion for its conversational AI technology, applicable across multiple sectors including automotive, financial services, restaurants, and healthcare [3][4]. Revenue Streams - SoundHound AI has established three primary revenue pillars: 1. Product royalties from embedding its voice AI in devices like smart TVs and vehicles [5]. 2. Service revenue from businesses utilizing its platform for customer interactions, such as appointment scheduling and order taking [5]. 3. Monetization through commissions or revenue sharing when its platform processes orders [5]. Financial Performance - In Q3 2025, SoundHound AI reported revenues of $42 million, with losses amounting to $109.3 million. The company is still in the early stages of revenue generation from its markets [8][7]. Future Outlook - The CFO indicated that the company is on track to maintain a hypergrowth trajectory while nearing break-even on the bottom line, which could enhance its position among AI stocks [9]. If profitability is achieved, it may positively impact the stock price, making current trading levels under $8 an attractive long-term investment opportunity [10].

Core Insights - Generative AI is viewed as a transformative technology by Amazon's CEO Andy Jassy, indicating its potential to significantly enhance customer experiences across the company [1] - Elon Musk predicts that by 2040, humanoid robots could create a market worth $250 trillion, representing a major shift in the global economy driven by AI innovation [2][3] - Major firms like PwC and McKinsey acknowledge the potential of AI to unlock multi-trillion-dollar opportunities, reinforcing the optimistic outlook on AI's economic impact [3] Company and Industry Analysis - A breakthrough in AI technology is seen as a catalyst for redefining work, learning, and creativity, leading to increased interest from hedge funds and top investors [4] - There is speculation about an under-owned company that may play a crucial role in the AI revolution, suggesting that it could be a significant investment opportunity [4][6] - Prominent figures in technology and investment, including Bill Gates and Warren Buffett, recognize AI as a major technological advancement with the potential for substantial social benefits [8]

Core Insights - SoundHound AI, Inc. (SOUN) identifies a total addressable market (TAM) exceeding $140 billion across various sectors, establishing itself as a prominent independent voice AI platform. The main investor concern revolves around the realistic accessibility of this market opportunity [1] Financial Performance - In the third quarter, SoundHound's revenue increased by 68% year over year, reaching $42 million. The management has revised its 2025 revenue forecast to a range of $165 million to $180 million. The company is now processing over 1 billion queries monthly, indicating a transition from pilot projects to larger-scale deployments, which enhances revenue visibility [2][11] Market Penetration and Growth Areas - The potential for reaching the TAM is contingent on vertical market penetration. The restaurant sector is a primary growth driver, while financial services, healthcare, and insurance are expanding through the Amelia 7 agentic platform. Although automotive sector challenges persist, new voice commerce integrations are helping to mitigate these issues. At CES 2026, SoundHound demonstrated various monetization features, including in-vehicle reservations and multi-agent navigation [3][4] Financial Position - SoundHound holds $269 million in cash with no debt, providing the company with the flexibility to invest aggressively while aiming for breakeven profitability by 2026. Although capturing the entire $140 billion TAM is unlikely in the short term, consistent enterprise wins and voice commerce growth indicate that a significant portion of the market is increasingly attainable [4][11] Competitive Landscape - Cerence Inc. and Amazon.com, Inc. are two major players influencing the accessibility of SoundHound's TAM. Cerence has strong ties within the automotive sector but is transitioning towards generative AI, which may limit its broader market capture. In contrast, Amazon operates at a large scale with its Alexa and AWS services but has historically focused on consumer applications rather than voice-driven enterprise solutions [5][6][7] Strategic Positioning - SoundHound's independent and vertically-focused agentic platform allows it to target specific segments of the TAM rather than competing across all areas simultaneously, which may enhance its market capture potential [8] Stock Performance and Valuation - SoundHound's stock has declined by 51.8% over the past six months, underperforming compared to the Zacks Computers - IT Services industry, which saw a 13.7% decline. The current forward 12-month price-to-sales ratio for SOUN is 14.05, slightly above the industry's 13.96 [9][13] Earnings Estimates - The Zacks Consensus Estimate for SOUN's loss per share in 2026 has widened to 6 cents from 5 cents, although this represents an improvement from a year-ago estimate of a 15-cent loss per share. Year-over-year growth estimates indicate significant improvements across various time frames [15][16]