Core Viewpoint - A class action lawsuit has been filed against SoundHound AI, Inc. for failing to disclose material weaknesses in its internal controls over financial reporting, particularly related to corporate acquisitions [1][2]. Summary by Sections Allegations - Robbins LLP is investigating allegations that SoundHound AI, Inc. did not disclose material weaknesses in its internal controls over financial reporting, which affected its ability to account for corporate acquisitions [2]. - The complaint states that SoundHound overstated its remediation efforts regarding these weaknesses, leading to inflated reported goodwill following the Amelia Acquisition [2]. - The company is expected to require additional time and resources to account for the SYNQ3 and Amelia Acquisitions, increasing the risk of delays in filing financial reports with the SEC [2]. Recent Developments - On March 4, 2025, SoundHound announced it would be unable to timely file its Annual Report for 2024 due to complexities in accounting for the SYNQ3 and Amelia Acquisitions, and acknowledged material weaknesses in its internal controls [3]. - Following this announcement, SoundHound's stock price dropped by $0.61, or 5.86%, closing at $9.72 per share [3]. Next Steps - Shareholders may be eligible to participate in the class action against SoundHound AI, Inc. and can contact Robbins LLP if they wish to serve as lead plaintiff [4]. - Participation in the case is not required to be eligible for recovery, and shareholders can choose to remain absent class members [4].

Core Insights - SoundHound AI has experienced significant price fluctuations but remains a compelling investment opportunity due to its strong business fundamentals and growth potential [1][11]. Company Overview - SoundHound AI, originally known for its music identification apps, has evolved to develop AI tools for audio decoding, which have found applications in various industries [2][3]. - The company launched the Houndify system in 2016, leading to partnerships with global automakers and entertainment technology firms, and subsequently went public [4]. Business Development - SoundHound AI has secured a backlog of $1.2 billion in unfilled orders, representing a 75% increase year-over-year, indicating strong demand for its services [6]. - The company has established partnerships with notable clients, including Stellantis and restaurant management specialist Toast, expanding its market reach [5]. Stock Performance - The stock price of SoundHound AI saw a dramatic rise from $1.70 to $8.00 per share, influenced by an investment from Nvidia, but later experienced a decline [7][11]. - As of March 25, the stock was priced at $10.20 per share, down 49.4% year-to-date, but is now viewed as a more reasonable investment opportunity [11]. Market Dynamics - The stock became a target for short-sellers, with 33% of its publicly traded shares on loan, leading to a short-squeeze scenario that ultimately did not materialize as expected [8][10]. - The excessive price manipulation experienced in December has subsided, allowing for a more stable investment environment [12]. Investment Outlook - SoundHound AI is positioned as a practical application of AI technology across lucrative markets, making it a strong candidate for investment consideration [13].

Core Viewpoint - SoundHound AI has experienced significant stock volatility, with a notable rise of over 350% since the start of 2024, despite a decline from its peak due to Nvidia selling its stake and broader AI market sell-offs [1][2][5] Company Overview - SoundHound AI focuses on audio input for AI applications, differentiating itself from competitors that primarily use text input, which is particularly useful in hands-free situations [6] - The company has a current market capitalization of $3.9 billion, and to turn a $10,000 investment into $1 million, it would need to grow to nearly $400 billion, a challenging feat given the scale of existing giants in the industry [4] Financial Performance - In Q4, SoundHound's revenue grew by 101% to $34.5 million, with management projecting revenue between $157 million and $177 million for 2025, indicating a potential growth rate of 97% at the midpoint [7] - The revenue backlog at the end of Q4 was $1.2 billion, suggesting sustained growth potential for several years, even after accounting for the 2025 revenue forecast [8] Valuation Metrics - Despite a 60% decline from its all-time high, SoundHound's stock trades at a high valuation of 39 times sales, which is above the typical range of 10 to 20 times for software companies [9] - If SoundHound doubles its revenue as projected, the valuation could adjust to around 20 times sales, making it more attractive [10] Future Outlook - The future performance of SoundHound's stock will largely depend on its ability to sustain growth beyond 2025, with potential for significant stock price appreciation if revenue continues to double in subsequent years [11] - While the potential for turning a $10,000 investment into $1 million is unlikely, the company could still represent a successful investment opportunity that enhances portfolio returns [12]

Company Performance - SoundHound AI, Inc. closed at $10.20, reflecting a -1.07% change from the previous day, underperforming the S&P 500 which gained 0.16% [1] - The company's shares increased by 9.33% over the past month, outperforming the Computer and Technology sector which declined by 5.94% and the S&P 500 which fell by 3.59% [1] Earnings Expectations - The upcoming earnings report for SoundHound AI, Inc. is anticipated to show an EPS of -$0.07, remaining consistent with the same quarter last year [2] - Revenue is expected to reach $30.21 million, representing a significant increase of 160.62% compared to the same quarter last year [2] Full Year Projections - For the full year, analysts project an EPS of -$0.16 and revenue of $165.76 million, indicating increases of +84.62% and +95.72% respectively from the previous year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for SoundHound AI, Inc. are important as they reflect short-term business trends, with positive changes indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which incorporates these estimate changes, provides a rating system that can help investors make informed decisions [5] Zacks Rank and Industry Position - SoundHound AI, Inc. currently holds a Zacks Rank of 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 4.72% in the past month [6] - The Computers - IT Services industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 78, placing it in the top 32% of over 250 industries [7]

Core Insights - The individual has retired after over 43 years in investment research, now operating independently to provide actionable investment insights [1] - The focus is on rules and factor-based equity investing strategies, emphasizing the use of numbers to inspire human intelligence-driven investment stories rather than solely relying on statistical studies [1] - The individual combines quantitative analysis with classic fundamental analysis to uncover the true story of companies and their stocks, aiming to predict future performance [1] Experience and Background - The individual has extensive experience covering a wide range of stocks, including large cap, small cap, micro cap, value, growth, and income [1] - Previous roles include managing a high-yield fixed-income fund and conducting research on quantitative asset allocation strategies, contributing to the development of Robo Advising [1] - The individual has authored two books on stock selection and analysis and has a passion for investor education, having conducted numerous seminars [1]

SoundHound AI (SOUN -2.74%) was one of the best-performing stocks in 2024, rising 836%. At its peak, the stock was up a jaw-dropping 1,040% -- but that was last year. Since peaking in December, SoundHound AI has sold off incredibly quickly and now sits around 60% off its all-time high. TThat's a tough pill to swallow for anyone who bought at the top, but is this a buying opportunity for those who missed the initial run-up?SoundHound AI is a global companySoundHound AI is clearly an artificial intelligence c ...

As a former SoundHound AI (NASDAQ: SOUN ) shareholder and a huge believer in this company’s long-term potential, I am still not in a rush to re-enter, even after the stock dropped from $24 per share to approximately $10. Despite the stiffI am a finance and investment enthusiast with a strong focus on fundamental analysis, valuation, and long-term growth potential, particularly in the AI, fintech, and tech sectors. My background includes academic studies in finance and economics, along with experience in equ ...

Nvidia (NVDA -0.14%) supplies the most powerful data center chips for developing artificial intelligence (AI) models. In fact, the company's valuation has soared by more than $2.2 trillion over the last two years because sales have been so strong.In late 2023, Nvidia started spreading some of its wealth by investing in a handful of smaller AI companies. One of them was SoundHound AI (SOUN -2.41%), which is a leading developer of conversational AI technologies. But when Nvidia released its latest form 13F de ...

Core Viewpoint - The Schall Law Firm is investigating claims against SoundHound AI, Inc. for potential violations of securities laws, particularly concerning misleading statements and undisclosed information [1][2]. Group 1: Investigation Details - The investigation centers on whether SoundHound issued false or misleading statements and failed to disclose critical information to investors [2]. - SoundHound filed a Notification of Late Filing on Form 12b-25 with the SEC on March 4, 2025, indicating it could not file its 10-K annual report on time due to accounting complexities [2]. - The company identified material weaknesses in its internal control over financial reporting, which persisted as of December 31, 2024 [2]. Group 2: Company Response - SoundHound expects to file its Form 10-K within the fifteen-day period allowed under Rule 12b-25, no later than March 18, 2025 [2].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud and unlawful business practices involving SoundHound AI, Inc. and its officers or directors [1][2] Group 1: Company Disclosure - On March 4, 2025, SoundHound announced it would not be able to file its annual report for 2024 on time due to complexities in accounting for prior acquisitions [2] - The company identified material weaknesses in its internal control over financial reporting, which contributed to the delay [2] Group 2: Market Reaction - Following the announcement, SoundHound's stock price decreased by $0.61, or 5.86%, closing at $9.72 per share on March 4, 2025 [2] Group 3: Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a long history of fighting for victims of securities fraud and corporate misconduct [3]