Latest news with #AIcompany
Yahoo
3 days ago
- Business
- Yahoo
SoundHound AI (NASDAQ:SOUN) Reports Strong Q2, Stock Jumps 23.4%
Voice AI recognition company SoundHound (NASDAQ:SOUN) reported Q2 CY2025 results exceeding the market's revenue expectations , with sales up 217% year on year to $42.68 million. Its GAAP loss of $0.19 per share was significantly below analysts' consensus estimates. Is now the time to buy SoundHound AI? Find out in our full research report. SoundHound AI (SOUN) Q2 CY2025 Highlights: Revenue: $42.68 million vs analyst estimates of $32.54 million (217% year-on-year growth, 31.2% beat) EPS (GAAP): -$0.19 vs analyst estimates of -$0.09 (significant miss) Adjusted Operating Income: -$78.05 million vs analyst estimates of -$37.86 million (-183% margin, significant miss) Operating Margin: -183%, down from -163% in the same quarter last year Free Cash Flow was -$24.69 million compared to -$19.35 million in the previous quarter Market Capitalization: $4.31 billion Company Overview Founded in 2005, SoundHound AI (NASDAQ:SOUN) develops independent voice artificial intelligence solutions that enable businesses across various industries to offer customized conversational experiences to consumers. Revenue Growth Examining a company's long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last three years, SoundHound AI grew its sales at an incredible 88.5% compounded annual growth rate. Its growth beat the average software company and shows its offerings resonate with customers. This quarter, SoundHound AI reported magnificent year-on-year revenue growth of 217%, and its $42.68 million of revenue beat Wall Street's estimates by 31.2%. Looking ahead, sell-side analysts expect revenue to grow 32.5% over the next 12 months, a deceleration versus the last three years. Still, this projection is commendable and suggests the market is forecasting success for its products and services. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Customer Acquisition Efficiency The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it's the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability. SoundHound AI is extremely efficient at acquiring new customers, and its CAC payback period checked in at 0.5 months this quarter. The company's rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give SoundHound AI more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments. Key Takeaways from SoundHound AI's Q2 Results We were impressed by how significantly SoundHound AI blew past analysts' EBITDA expectations this quarter. We were also excited its revenue outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 23.4% to $13.27 immediately after reporting. Indeed, SoundHound AI had a rock-solid quarterly earnings result, but is this stock a good investment here? If you're making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it's free. Sign in to access your portfolio
Globe and Mail
02-08-2025
- Business
- Globe and Mail
Should You Buy the Dip on C3.ai's Stock?
Key Points CEO and founder, Tom Siebel, has announced his decision to step down once a new CEO is in place. could go two different ways with its CEO search. 10 stocks we like better than › (NYSE: AI) has had a rough week. On July 24, the stock plummeted more than 10% after the abrupt announcement of a CEO search. This is a big deal because CEO Tom Siebel was one of the founders of He has numerous accolades, and isn't his only success story, so his stepping away from the company is not great news for shareholders. But is this an opportunity to scoop up the stock of a promising AI play at a discount, or something else? Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Some companies wouldn't be the same without their leadership Not all CEO departures are the same. Abrupt ones without any forewarning are the most concerning. While this departure falls into this category, it's for an unfortunate reason. Siebel was diagnosed with an autoimmune disease and has begun the search for his replacement. While he has mostly recovered from this disease, he believes that he cannot handle the rigorous demands of being the CEO of a rapidly growing AI company, which is why a new person is needed to lead While this is sad, investors need to understand that this happens from time to time in the market and assess if they were investing in for the company or its leadership. There are countless examples of companies that wouldn't be the same without their leader. One prime example is Tesla 's (NASDAQ: TSLA) Elon Musk. Whether you love him, don't like him, or are neutral doesn't matter -- the company would be different without him at the helm. So, is it worth scooping up shares at a discount without Siebel at the helm? is delivering strong growth at the cost of profitability provides turnkey AI solutions for its customers, making it a great option to get up and running in the AI game. Additionally, it has won several government contracts to develop AI solutions within the U.S. Defense Department. This has led to strong growth for the company, with revenue rising 25% year over year in fourth-quarter fiscal year 2025 (ending April 30). It also expects strong growth for FY 2026, with revenue expected to be about $466 million, up 20% from FY 2025's $389 million. That projection is unlikely to shift with a new CEO eventually at the helm, so the big change will be where heads after this year. is at a crossroads as a company, and who Siebel and the board decide to bring on as a replacement will give investors a clue about what direction is heading. Right now, it's a growth-at-all-costs business. This is evidenced by its poor profitability. AI Profit Margin data by YCharts. While has made some improvements in its profitability, it remains a long way from turning a profit. Who decides to bring on as CEO will clue investors in as to where the company is heading next. It could bring on an operations-focused CEO who works toward shifting the company to be profitable, potentially at the cost of some revenue growth. Another option is to bring on a CEO who's growth-oriented and maintains current path. I think it would be smart to strike a balance between these two traits, but I'll have to wait and see who brings on before I can make a final decision. As a result, I think investors should be patient and see who decides to hire, then make a call from there. If you already own shares, there's no reason to sell. But I'd be cautious about adding until there is some clarity regarding who will lead the company. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
02-08-2025
- Business
- Yahoo
Should You Buy the Dip on C3.ai's Stock?
Key Points CEO and founder, Tom Siebel, has announced his decision to step down once a new CEO is in place. could go two different ways with its CEO search. 10 stocks we like better than › (NYSE: AI) has had a rough week. On July 24, the stock plummeted more than 10% after the abrupt announcement of a CEO search. This is a big deal because CEO Tom Siebel was one of the founders of He has numerous accolades, and isn't his only success story, so his stepping away from the company is not great news for shareholders. But is this an opportunity to scoop up the stock of a promising AI play at a discount, or something else? Some companies wouldn't be the same without their leadership Not all CEO departures are the same. Abrupt ones without any forewarning are the most concerning. While this departure falls into this category, it's for an unfortunate reason. Siebel was diagnosed with an autoimmune disease and has begun the search for his replacement. While he has mostly recovered from this disease, he believes that he cannot handle the rigorous demands of being the CEO of a rapidly growing AI company, which is why a new person is needed to lead While this is sad, investors need to understand that this happens from time to time in the market and assess if they were investing in for the company or its leadership. There are countless examples of companies that wouldn't be the same without their leader. One prime example is Tesla's (NASDAQ: TSLA) Elon Musk. Whether you love him, don't like him, or are neutral doesn't matter -- the company would be different without him at the helm. So, is it worth scooping up shares at a discount without Siebel at the helm? is delivering strong growth at the cost of profitability provides turnkey AI solutions for its customers, making it a great option to get up and running in the AI game. Additionally, it has won several government contracts to develop AI solutions within the U.S. Defense Department. This has led to strong growth for the company, with revenue rising 25% year over year in fourth-quarter fiscal year 2025 (ending April 30). It also expects strong growth for FY 2026, with revenue expected to be about $466 million, up 20% from FY 2025's $389 million. That projection is unlikely to shift with a new CEO eventually at the helm, so the big change will be where heads after this year. is at a crossroads as a company, and who Siebel and the board decide to bring on as a replacement will give investors a clue about what direction is heading. Right now, it's a growth-at-all-costs business. This is evidenced by its poor profitability. While has made some improvements in its profitability, it remains a long way from turning a profit. Who decides to bring on as CEO will clue investors in as to where the company is heading next. It could bring on an operations-focused CEO who works toward shifting the company to be profitable, potentially at the cost of some revenue growth. Another option is to bring on a CEO who's growth-oriented and maintains current path. I think it would be smart to strike a balance between these two traits, but I'll have to wait and see who brings on before I can make a final decision. As a result, I think investors should be patient and see who decides to hire, then make a call from there. If you already own shares, there's no reason to sell. But I'd be cautious about adding until there is some clarity regarding who will lead the company. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $625,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,090,257!* Now, it's worth noting Stock Advisor's total average return is 1,036% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Keithen Drury has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends The Motley Fool has a disclosure policy. Should You Buy the Dip on Stock? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
14-07-2025
- Business
- Bloomberg
Musk Has Money and xAI Wants Some
One model you could have is: Tesla Inc. is a big car company. Last year it had $97.7 billion of revenue, up about 1% from the year before. It had about $14.9 billion of cash flow from operations and spent about $11.3 billion on capital expenses. It has about $37 billion of cash and short-term investments. That is: It is a big, stable, slow-growing 1 old-economy industrial company with good cash flow and limited need for reinvestment. I understand that nobody experiences Tesla this way, and I feel dumb for writing it, but, you know, a little. And then there is xAI, which is an artificial intelligence company, meaning that (1) it is currently a gaping maw for swallowing up money and (2) perhaps one day it will fulfill any economic or other fantasy you can think of. Maybe one day xAI will produce the only computer program that anyone uses, and will intermediate all of commerce, and will satisfy every human want, and will rule humanity with an iron fist. I mean! There are like five candidates and xAI is one of them; the probability of this outcome is not zero. And then you'd be stoked to be an xAI shareholder. 2 But, right now, gaping maw for capital.
