Why SoundHound AI Stock Is Down Today

Earnings Performance - SoundHound AI reported Q3 sales of $25 1 million, a 89$23 million [2] - Adjusted net losses improved from $0 09 to$0 04 per share, surpassing the expected $0 07 loss [2] Backlog and Acquisitions - The company's backlog is valued at over$1 billion with an average contract duration of six years [4] - Excluding the Amelia acquisition, the backlog more than doubled from $342 million in the previous year [5] - The acquisition of Amelia, an enterprise AI software maker, adds significant value to the backlog metric, which will be consolidated in the next report [3][4] Stock Performance and Market Reaction - Despite strong earnings, SoundHound AI's stock dropped 19 1% due to insufficient support for a price increase driven by social media hype [1][7] - The company's guidance for 2024 and 2025 is slightly ahead of current Street views, indicating strong growth prospects [6] Long-Term Outlook - SoundHound AI's AI-powered voice controls are expected to create significant shareholder value over the long term [9] - The recent price drop is seen as a healthy correction, aligning the stock with its actual business trajectory rather than speculative social media activity [7][8]