Core Viewpoint - SoundHound AI's stock is experiencing significant sell-offs due to broader market bearish pressures and rising competitive threats in the conversational AI space [1][2][4]. Market Reaction - The company's share price fell by 14.4% at 11:15 a.m. ET, with a peak decline of 17% during the trading day, while the S&P 500 and Nasdaq Composite indices saw minor declines of 0.1% and 0.3%, respectively [1][2]. Economic Factors - Investors are concerned about potential economic risks stemming from President-elect Trump's proposed tariff policies, which could impact market sentiment and valuations [2][3][4]. Competitive Landscape - SoundHound AI has historically held a leading position in the conversational AI market, with its stock price increasing by 659% over the past year despite recent declines [5][8]. - The company is facing increasing competition from major tech players like Nvidia, which are launching new agentic AI technologies that could encroach on SoundHound AI's market share [6][7]. Valuation and Growth - Despite strong sales growth and excitement around its technologies, SoundHound AI's valuation stands at approximately $5.7 billion, indicating it remains a relatively small player in the tech industry [8].

SoundHound AI (SOUN) shares have skyrocketed 755.9% in the trailing 12 months, outperforming the Zacks Computer and Technology sector’s appreciation of 35.4% and the Zacks Computers – IT Services industry’s return of 15.9%.SOUN has been benefiting from an innovative portfolio, a rich partner base and a growing clientele. It recently unveiled the first-ever in-vehicle voice commerce platform at CES 2025. The cutting-edge system enables drivers and passengers to order takeout directly from the car’s infotainm ...

SoundHound AI (SOUN -10.69%) stock posted a month of explosive gains across December's trading. The conversational artificial intelligence (AI) company's share price closed out last month up 113.1%, according to data from S&P Global Market Intelligence. SoundHound AI closed out 2024 with some of the stock market's most impressive gains, posting a share increase of 836% across the stretch. The company finished the year with another month of growth thanks to new contract wins and bullish coverage from analyst ...

After a stock rises 800% in one year, most investors are skeptical that it can have another great year. I don't blame anyone for having this mindset, as it's difficult for a stock to continue rising at that pace for a sustainable time frame.However, some of the tailwinds supporting SoundHound AI's (SOUN -9.63%) stock are undeniable, potentially making SoundHound an outlier. Even though it has risen more than 800% in the last year, some investors think that SoundHound is poised for more upside and will make ...

SoundHound AI (SOUN -9.63%) stock shot nearly 1,000% higher over the last year, with the largest portion of the gain occurring in November and December 2024. Its high-profile investors, client list, and innovation in so-called "next generation" artificial intelligence (AI) have made it popular among investors.Incredibly, its price-to-sales (P/S) ratio, which was just below 100 at the time of this writing, has not deterred investors despite being more than 30 times the S&P 500's average sales multiple of 3. ...

SoundHound AI (SOUN 2.28%) is one of the hottest stocks in the world, up roughly 800% over the past year thanks to surging demand and interest surrounding its conversational artificial intelligence (AI) technologies. These offerings are already being used at significant scale by customers in the automotive and restaurant industries, and the company is looking to expand its position in other categories, including healthcare and financial services.In last year's third quarter, the business saw its revenue inc ...

Company Overview - SoundHound has diversified and grown its customer base while developing its proprietary voice AI model [3] - The company has made several accretive acquisitions and built an impressive customer list [4] - SoundHound has achieved a leading position in voice-enabled AI systems outside big tech, particularly in automotive and quick-serve restaurant (QSR) verticals [6] - The acquisition of Amelia has boosted SoundHound's enterprise platforms for customer service and employee-facing IT AI applications [7] - SoundHound has been developing voice AI technology since 2005 and released its Houndify platform in 2015 [8] - The company has built its proprietary voice AI model, Polaris, based on decades of experience and billions of conversations [9][10] Financial Performance - SoundHound reported 89% revenue growth in its mid-November third-quarter earnings report [11] - The company increased its full-year revenue guidance for 2024 to $82 million-$85 million and for 2025 to $155 million-$175 million [11] - Operating losses more than doubled from $14 million to $33 million last quarter, but this is manageable given the company's top-line growth [18] Market Position and Valuation - SoundHound's stock has surged 400% in two months, reaching a market cap of $9 billion [16] - The stock's valuation is 45 times next year's sales, anticipating extremely high growth for many years [16] - The rapid price increase appears to be driven by a mania in next-generation technology stocks rather than fundamentals [19] - Sell-side analysts have increased their share-price targets as the stock has risen, but this may follow rather than lead the price [20] Industry Context - Smaller AI stocks, especially those backed by Nvidia, have seen parabolic growth at the end of 2024 [5] - SoundHound has an early lead in voice AI, but large tech giants may enter the sector if it proves attractive [13] - The company's proprietary data and model give it a competitive advantage in the AI age [10] Customer and Vertical Success - SoundHound has secured seven of the top 20 QSR brands, including Chipotle, for phone and drive-through ordering [6] - The company's voice AI is embedded in many leading auto brands, including those owned by Stellantis and four major EV manufacturers [6]

Company Overview - SoundHound AI specializes in voice-based AI solutions, including drive-thru order processing and hands-free car feature activation [10] - The company monetized its technology to the tune of $25 million during the quarter ending in September, up 89% year over year [1] - SoundHound AI is positioned to capture its fair share of the growing speech recognition market [7] Industry Growth - The global speech recognition industry is poised to grow at an annualized pace of 17% through 2032 [2] - Technology stocks, including those in AI, are driving significant social, economic, and cultural changes [3] Competitive Landscape - Major tech companies like Microsoft, Google, and OpenAI have the potential to develop similar voice-based AI solutions [4] - SoundHound AI's technology, while impressive, lacks uniqueness, which could be a concern for long-term growth [17] Financials and Valuation - SoundHound AI shares are trading at roughly 100 times its trailing-12-month revenue, compared to the S&P 500's price-to-sales ratio of 3.1 [12] - The company continues to issue new stock to raise funds, diluting existing shareholders [18] - Analysts' consensus price target of $14.36 is 40% below the current share price [18] Market Perception - SoundHound AI's stock has seen a 300% price spike since late October, indicating investor optimism [9] - The company is viewed as an underappreciated pure-play AI company with potential for accelerated growth and new market prospects [6] Future Prospects - SoundHound AI could potentially develop new marketable technologies with wider defensive moats [13] - The company's top line could grow more than 30-fold and still be priced in line with its peers [14]

With today's gains, SoundHound AI stock is now up more than 1,000% in 2024.SoundHound AI (SOUN 17.61%) stock is posting big gains in Thursday's trading. The company's share price was up 17.9% as of 12:30 p.m. ET.SoundHound AI stock is surging amid a day of strong momentum for meme stocks. Speculative growth plays are seeing a strong rebound on the heels of recent valuation volatility, and the conversational artificial intelligence (AI) is also getting a boost from bullish analyst coverage.SoundHound AI stoc ...

Valuation and Investment Perspective - SoundHound's forward price-to-sales (P/S) ratio is nearly 90, indicating a high valuation despite the company not being profitable yet [1] - The stock is considered an aggressive investment, with potential for a profitable future as use cases grow [1] - The company's scalable platform is expected to allow revenue, adjusted EBITDA, and earnings to catch up to the share price over time [6] Stock Performance - SoundHound AI stock has more than quadrupled over the last three months and is up by 860% year to date [3] - Wall Street analyst Scott Buck maintains a "buy" rating and raised the price target from $8 to $26 per share, implying a 27% upside [7] Market Expansion and Revenue Growth - The market for voice technology has expanded from customer service sectors to automotive use cases, integrating cloud-based large language models into vehicles [4] - Recent acquisitions are expected to significantly increase the scope of SoundHound's business in retail, healthcare, and financial services [5] - SoundHound management has increased revenue guidance for this year and estimates sales will approximately double in 2025 [8] Industry Demand - Demand for voice generative AI is expected to continue growing across multiple sectors [5]