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Is It Too Late to Buy the SoundHound (SOUN) AI Stock After Its 50% Rally?
The Motley Fool· 2025-11-30 12:05
Core Viewpoint - SoundHound's stock has experienced significant volatility, with a 50% increase over the past year but a 40% decline year-to-date, raising questions about the timing of potential investments [1] Group 1: Company Overview - SoundHound started as a music-recognition specialist and has transitioned into the voice artificial intelligence market, with applications in vehicles and restaurants [1] - The company reported record revenue of $42 million in the third quarter, representing a 68% year-over-year increase, and management has raised its projections [2] Group 2: Investment Considerations - The current valuation of SoundHound is considered steep, with a price-to-sales ratio of 32, down from 90 in 2024, but still high given its quarterly revenue of $42 million [3] - Despite its growth potential, the company has been posting losses, burning through cash, and experiencing significant shareholder dilution due to an increase in share count [4]