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]

Core Insights - The article provides a contrasting view of the analyst's portfolio, highlighting a diverse range of stocks that the analyst is interested in [1] Group 1 - The analyst expresses a beneficial long position in shares of SOUN and GOOG, indicating confidence in these stocks [2] - The article emphasizes the importance of conducting personal in-depth research and due diligence before making investment decisions [3] - It is noted that past performance is not a guarantee of future results, underscoring the inherent risks in investing [4]

Company Overview - SoundHound AI is an AI-powered disruptor in the field of conversational intelligence, focusing on enhancing user experience through voice-enabled products [1] Technology and Solutions - The company utilizes advanced technology to deliver high-quality, AI-enabled solutions aimed at businesses looking to improve customer interactions [1]

Core Insights - SoundHound AI's stock valuation is becoming more reasonable, making it a potential investment opportunity despite still being considered expensive [2][17] - The company has transitioned from its original app-based business to providing voice interpretation software for various industries, indicating a shift towards more sustainable revenue streams [4][5] Company Overview - SoundHound AI, which went public in April 2022, has a long history dating back to 2009 with its song identification app [3] - The company has raised $244 million through a SPAC merger to fund its new business strategy [4] Business Model and Applications - The company's voice interpretation software is utilized in various applications, including restaurant ordering systems and automotive voice controls [5][6] - Partnerships with major companies like Nvidia enhance SoundHound AI's credibility and market presence [6] Financial Performance - SoundHound AI's market cap is currently $5 billion, with a gross margin of 30.02% [7][8] - The company reported a 68% year-over-year increase in top-line sales for Q3 2025, with expectations of breakeven EBITDA in Q4 [14] Market Position and Future Outlook - The total addressable market for voice controls is estimated at $140 billion, indicating significant growth potential for SoundHound AI [15] - The stock is currently trading at 33.7 times trailing sales, a decrease from previous highs, suggesting a more favorable valuation for potential investors [16][17]

Core Insights - The article discusses the contrasting performance of two AI companies, BigBear.ai and SoundHound AI, in 2025 as organizations globally adopt AI technologies [1][2]. BigBear.ai Overview - BigBear.ai focuses on national security applications, utilizing AI for facial recognition and threat identification at airports [2][3]. - The company has seen a revenue increase of only 2% in 2024, reaching $158.2 million, and has faced challenges due to spending cuts from the Trump administration [4][5]. - Revenue for the first three quarters of 2025 dropped to $100.4 million from $114.4 million in the same period the previous year, leading to an operating loss of $133.4 million [5]. - BigBear.ai is pursuing growth through the acquisition of Ask Sage, which is expected to generate $25 million in annual recurring revenue in 2025, significantly boosting sales in 2026 [6]. SoundHound AI Overview - SoundHound AI applies AI for commercial purposes, such as interpreting human speech for food orders, and has a diverse customer base including major restaurant chains [8][9]. - The company reported revenue of $113.9 million in the first three quarters of 2025, more than doubling from $50.2 million in the same period of 2024, prompting a revenue forecast increase to $165 million to $180 million for the full year [9]. - Despite strong revenue growth, SoundHound experienced an operating loss of $115.9 million in Q3, up from a loss of $33.8 million the previous year, and is working on cutting expenses [10]. - The company anticipates achieving adjusted EBITDA profitability by the end of 2025, contingent on meeting its revenue targets [11]. Investment Considerations - Both companies are currently unprofitable, but SoundHound's significant revenue growth and diversified income streams make it a more attractive investment compared to BigBear.ai, which relies heavily on government contracts [14][16]. - SoundHound's revenue growth indicates a strong market demand for its products, while BigBear.ai's stagnant growth suggests less competitive offerings [17]. - SoundHound's price-to-sales (P/S) ratio is 30, significantly higher than BigBear.ai's 12, indicating that while SoundHound is a better investment option, its valuation may be too high at present [18].

Core Insights - SoundHound AI, Inc. (SOUN) has partnered with Parkopedia to introduce a voice-powered in-vehicle parking agent within its in-car voice commerce platform, enhancing the parking experience for drivers [1][2][9] Partnership Details - The collaboration integrates Parkopedia's extensive global parking database, which includes over 90 million spaces across more than 20,000 cities, with SoundHound's voice commerce platform [3] - This integration allows drivers to search for, reserve, and pay for parking using natural voice commands, improving safety and convenience while driving [4] Strategic Positioning - The launch of the voice-activated parking system strengthens SoundHound's position as a provider of smarter in-car experiences, aligning with consumer preferences for speed, convenience, and hands-free interactions [5] - SoundHound is rapidly expanding its enterprise AI presence through strategic partnerships, enhancing its conversational platforms and overall market reach [6][7] Stock Performance - SOUN stock has increased by 8.7% over the past six months, contrasting with an 11% decline in the Zacks Computers - IT Services industry, driven by successful acquisitions and strong customer partnerships [8]

Group 1 - The article discusses the potential for investing in undervalued stocks that are mispriced by the market as the end of November approaches [1] - Stone Fox Capital, based in Oklahoma, is led by Mark Holder, a CPA with extensive experience in investing and portfolio management [2] - The investing group "Out Fox The Street" provides stock picks, deep research, model portfolios, daily updates, and real-time alerts to help investors identify potential multibaggers while managing portfolio risk [2] Group 2 - Mark Holder has 30 years of investing experience, including 15 years as a portfolio manager, indicating a strong background in the field [2] - The group offers community chat and direct communication with Mark for questions, enhancing investor engagement and support [2]

Core Viewpoint - A significant correction in SoundHound AI (SOUN) does not present a clear opportunity for accumulation, with identified risks to a Buy thesis, especially at current valuations despite recent price adjustments [1]. Company Analysis - SoundHound AI operates in the high-growth voice AI sector, indicating potential for future expansion [1]. Market Trends - The current market conditions and valuation levels raise concerns about the attractiveness of SoundHound AI as an investment opportunity [1].

Core Insights - SoundHound AI and Parkopedia have expanded their partnership to introduce an in-vehicle voice AI parking agent, enhancing the driving experience with hands-free parking discovery, recommendations, and bookings [3][4][5] Company Overview - SoundHound AI is a global leader in voice and conversational AI, providing solutions that enhance customer experiences across various industries [9] - Parkopedia is the leading connected car services provider, helping drivers find and pay for parking, EV charging, fuel, and tolls across 90 countries [10] Partnership Details - The collaboration integrates Parkopedia's global parking database, which includes over 90 million spaces in more than 20,000 cities, with SoundHound's voice commerce platform [4][5] - The new Parkopedia AI Agent offers proactive recommendations, real-time pricing, and availability, making parking easier and more convenient for drivers [5][6] Technology and Features - The voice AI parking agent allows drivers to find parking, compare prices, and complete payments using voice commands, significantly reducing friction in the parking process [5][7] - This technology is part of a broader vision to make in-car tasks effortless and connected, with plans to expand into other services like restaurant reservations and ticket purchases [8] Future Plans - The partnership will be showcased at CES 2026, highlighting the potential for hands-free voice commerce capabilities across multiple industries [8]

Core Insights - Artificial intelligence is a dynamic market theme, with SoundHound AI (SOUN) and Veritone (VERI) positioned in high-growth enterprise applications [1][2] - Both companies are transitioning to higher-margin software models and reported strong revenue growth in the latest quarter [2] - The contrasting business models and financial profiles of SOUN and VERI provide relevant insights for investors [2][3] SoundHound Stock Analysis - SoundHound reported Q3 2025 revenue of $42 million, a 68% year-over-year increase, driven by diverse deployments across various sectors [4] - The company emphasizes global enterprise AI adoption and has expanded its presence through strategic partnerships [4][5] - SoundHound's competitive edge lies in its proprietary technology and language capabilities, with significant growth in the automotive sector [5] - Despite strong revenue growth, SoundHound continues to incur substantial losses, with operational complexities arising from rapid scaling and acquisitions [6] - The company's high valuation at a forward P/S ratio of 20.64X reflects growth expectations but poses risks if adoption slows [7][19] - SoundHound's strengths include platform scale and expanding product breadth, but profitability remains a long-term challenge [8] Veritone Stock Analysis - Veritone's Q3 2025 revenue grew 32% year-over-year to $29.1 million, with software revenue increasing by 55% [10] - The company has significantly improved its financial position by reducing annual debt service from over $14 million to approximately $800,000 [11] - Veritone's Data Refinery solution is gaining traction, with a bookings pipeline exceeding $40 million, indicating strong demand for AI-ready datasets [10][12] - The company benefits from recurring software revenue and a focused business model after divesting lower-margin operations [13] - Veritone's loss estimate for 2025 has narrowed, reflecting analysts' confidence in its path toward profitability [25] Market Performance Comparison - SoundHound shares are down 43.4% year-to-date, underperforming the tech sector and S&P 500, primarily due to concerns over losses and valuation [15] - In contrast, Veritone stock is up 20.7% year-to-date, benefiting from improved fundamentals and investor confidence [16] Valuation Insights - The valuation gap between SOUN and VERI is significant, with SOUN trading at a forward P/S ratio of 20.64X compared to VERI's 2.71X [19] - This disparity suggests that SOUN requires sustained execution to justify its premium valuation, while VERI could see multiple expansions with continued growth [20] EPS Estimate Trends - SoundHound's EPS estimate for 2025 remains unchanged at a loss of 13 cents, indicating limited near-term sentiment shift [21] - Veritone's EPS estimate has improved, narrowing to a loss of 47 cents, reflecting growing confidence in its profitability trajectory [25] Investment Outlook - Both companies operate in attractive AI markets, with SoundHound showing technological leadership and broad enterprise adoption [28] - Veritone presents a more favorable risk/reward profile with accelerating software growth and a transformed balance sheet [28][29]