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Business Insider
9 minutes ago
- Business Insider
‘Higher We Go,' Says Analyst About SoundHound AI Stock
SoundHound AI (NASDAQ:SOUN) stock began the week much like it ended the last – by piling on the gains. The shares have jumped ~50% over three sessions, fueled by an impressive quarterly performance. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. That surge was underpinned by a classic beat-and-raise showing from the voice AI specialist – and H.C. Wainwright analyst Scott Buck says the rally is well deserved. 'We view the positive reaction in shares as warranted as the company demonstrates its ability to grow organically through new contract wins and expansion of wallet share within the existing customer footprint,' Buck said. 'We believe this positive momentum will continue through the remainder of 2025 and likely into 2026.' The numbers back up that optimism. In 2Q25, SoundHound delivered $42.7 million in revenue, far ahead of Buck's $33.4 million forecast and representing a 217.1% year-over-year increase. This growth reflected both recent acquisitions and stronger organic performance. GAAP gross margin improved sequentially to 39% from 36.5% but remained below the 63% seen a year ago due to the lower-margin nature of newly acquired businesses. Buck believes that margin compression is temporary and expects a return to 'historical levels' as integration progresses. With revenue still expanding and margins set to recover, he sees the company reaching positive adjusted EBITDA in 4Q25 – and potentially for the full year 2026 – marking a critical inflection point. In the meantime, the analyst anticipates continued success with the company's 'land and expand' strategy to fuel organic growth. Those expectations are reflected in Buck's updated model. He now forecasts 2025 revenue of $165.0 million, slightly above his prior estimate and within management's $160.0 million–$178.0 million guidance range. His adjusted EBITDA outlook calls for a $48.4 million loss in 2025, but crucially includes a $0.6 million profit in Q4. For 2026, he projects $220.0 million in revenue and $5.5 million in adjusted EBITDA, noting that visibility into next year should improve as the company scales. 'As the company announces favorable 2H25 results and potentially shares its initial outlook for 2026, we expect SOUN shares to move higher,' Buck summed up. In line with that view, Buck assigns SOUN shares with a Buy rating and an $18 price target, suggesting a 13% upside from current levels. (To watch Buck's track record, click here) Across Wall Street, the view is more tempered, with 4 other Buys and 2 Holds combining for a Moderate Buy consensus. The $15.29 average price target implies shares could trade 4% lower a year from now. Watch out for either price target hikes, or conversely, rating downgrades from other analysts. (See SOUN stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.


Business Insider
9 minutes ago
- Business Insider
DBS downgrades Cathay Pacific Airways (CPCAF) to a Hold
Cathay Pacific Airways received a Hold rating and an HK$11.00 price target from DBS analyst Jason Sum today. The company's shares closed yesterday at $1.31. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Sum covers the Industrials sector, focusing on stocks such as SIA Engineering Co, SIA – Singapore Airlines, and Boeing. According to TipRanks, Sum has an average return of 16.6% and a 73.77% success rate on recommended stocks. The word on The Street in general, suggests a Moderate Sell analyst consensus rating for Cathay Pacific Airways with a $1.30 average price target, implying a -0.76% downside from current levels. In a report released on August 7, TR | OpenAI – 4o also downgraded the stock to a Hold with a HK$11.50 price target.


Business Insider
9 minutes ago
- Business Insider
WH Group (WHGRF) Gets a Buy from DBS
In a report released today, Clement Xu from DBS maintained a Buy rating on WH Group , with a price target of HK$8.70. The company's shares closed last Friday at $1.01. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. According to TipRanks, Xu is a 4-star analyst with an average return of 8.6% and a 66.10% success rate. Xu covers the Consumer Defensive sector, focusing on stocks such as China Resources Beer (Holdings) Co, Budweiser Brewing Co. APAC Ltd., and WH Group . WH Group has an analyst consensus of Strong Buy, with a price target consensus of $1.13. Based on WH Group 's latest earnings release for the quarter ending December 31, the company reported a quarterly revenue of $13.65 billion and a net profit of $828 million. In comparison, last year the company earned a revenue of $6.75 billion and had a net profit of $44 million