SoundHound AI (SOUN) shares are overvalued, as the Value Score of F suggests.SOUN shares are trading at a significant premium compared to the Zacks Computer & Technology sector. Its 12-month Price/Sales (P/S) of 14.43X is higher than the broader sector’s 6.13X, and the Zacks Computers - IT Services Industry’s 10.9X.SOUN shares are also trading at a premium compared with AI peers, C3.ai (AI) and BigBear.ai (BBAI) . Shares of AI and BBAI are currently trading at P/S of 7.84X and 2.31X, respectively.Is SoundHo ...

Financial Performance - SoundHound AI reported a 89% year-over-year revenue increase to $25 1 million in Q3, surpassing analyst expectations of $23 million [2] - The company's adjusted EPS improved to a loss of $0 04, better than the $0 06 loss a year ago and the $0 07 loss expected by analysts [2] - SoundHound raised its full-year revenue guidance for 2024 to $82-85 million from over $80 million, and for 2025 to $155-170 million from over $150 million [7] Business Growth - Cumulative subscriptions and bookings backlog doubled year-over-year, exceeding $1 billion including the Amelia acquisition, with an average contract duration of six years [3] - The company achieved double-digit growth in both automotive unit volume and unit pricing, while transitioning to more SaaS-like revenue streams [4] - SoundHound expanded its restaurant vertical, securing seven of the top 20 quick-service operators and signing a new deal with a top-three global pizza chain [5] Strategic Developments - The acquisition of Amelia enabled SoundHound to enter new verticals including telecom, healthcare, insurance, retail, and banking, while renewing contracts with a US military branch and a major payment card services company [6] - The company is integrating Amelia's technology to address gaps and expand into more verticals, potentially divesting lower-margin business segments [8] - SoundHound is developing its Polaris foundation model, built on billions of real conversations, with plans to incorporate Amelia's data to enhance future AI models [9] Market Position and Valuation - SoundHound's stock has risen approximately 200% year-to-date despite the recent dip following Q3 results [1] - The company trades at a forward price-to-sales multiple of 15 times 2025 analyst estimates, which is not considered particularly cheap [10][11] - SoundHound is positioned as a speculative growth stock with significant potential to become an AI voice ecosystem leader across industries [12]

Nvidia has been in magnificent form on the stock market in the past year, recording stunning gains of almost 207% as of this writing. This is thanks to the consistently strong growth in the company's top and bottom lines on account of the booming demand for its artificial intelligence (AI) chips.However, there is another AI stock that has outshined Nvidia on the market during this period. SoundHound AI (SOUN -4.07%), a small company that provides voice AI solutions to enterprises, has witnessed a 256% jump ...

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Is it time to buy SoundHound AI? Explore the social media hype and real business strengths behind the rise.As of this writing, it's been about three stock-trading days since I saw SoundHound AI (SOUN -17.06%) soaring like a meme stock, and warned that the sudden price jump wouldn't last. "This is not the right time to buy SoundHound AI stock," I said.Nearly a full market week later, the stock has gained another 8%. Was I wrong about the speculative nature of this artificial intelligence (AI) expert's stock ...

In Q3 2024, the AI-powered voice solutions provider, in which Nvidia holds a stake, posted strong revenue growth, but its relatively sizable losses continued.Shares of SoundHound AI (SOUN -17.06%) dropped 17.1% on Wednesday, following the artificial intelligence (AI)-powered voice solutions provider's release on the prior afternoon of its third-quarter 2024 report. The company beat Wall Street's consensus estimates for revenue and earnings, and management increased its revenue outlook for both full-year 202 ...

Key TakeawaysShares of SoundHound AI sank as the AI-based voice software maker's margins dropped. The company's revenue set a record, and its loss was less than analysts had anticipated.SoundHound AI boosted its revenue outlook for both 2024 and 2025. SoundHound AI (SOUN) shares plunged 16% Wednesday, a day after the provider of artificial intelligence (AI) voice technology software reported a big drop in gross margin.  The Nvidia (NVDA)-backed company’s third-quarter GAAP gross margin sank 24.3 percentage ...

SoundHound AI (SOUN) incurred a third-quarter 2024 loss of 6 cents per share, down from the year-ago quarter’s loss of 9 cents per share. The figure beat the Zacks Consensus Estimate by 25%.Revenues increased 89% year over year to $25.1 million, beating the Zacks Consensus Estimate by 5.96%. This growth was driven by the expansion of its Generative AI solutions and strong demand across various industries, particularly in automotive and restaurants.In the third quarter of 2024, SOUN completed the acquisition ...

The original view on the Amelia deal was concerning, but SoundHound AI (NASDAQ: SOUN ) rallied into earnings due to the strong reported growth rates. The business doesn't appear as impressive under the surface when looking at applesMark leads the investing group Out Fox The Street where he shares stock picks and deep research to help readers uncover potential multibaggers while managing portfolio risk via diversification. Features include various model portfolios, stock picks with identifiable catalysts, da ...

SoundHound AI (SOUN -17.77%) stock is losing ground today following the company's third-quarter earnings report Tuesday evening. The company's share price was down 18.7% as of 12:15 p.m. ET.SoundHound AI published third-quarter results after the market closed yesterday, delivering sales and earnings for the period that actually came in significantly better than anticipated. The company posted a non-GAAP (adjusted) loss of $0.04 per share on sales of $25.09 million in the period, beating the average Wall Str ...