Latest news with #SOUN
Business Insider
6 days ago
- Business
- Business Insider
SoundHound AI Stock (SOUN) Hits the High Notes, But Can It Stay in Tune?
SoundHound AI (SOUN) just reported a jaw-dropping 151% jump in quarterly revenue, helping to send the stock up roughly 8.5% in the past month, and over 100% in the past year. Yet, the company finds itself in a familiar spot for many tech-centric growth companies, caught between impressive revenue numbers and stubborn losses. The voice AI specialist has shown tremendous growth potential in an exploding market, but questions persist about when (or if) the company can turn a profit. Confident Investing Starts Here: With the voice AI market projected to reach over $30 billion within the next few years, SoundHound's positioning looks promising. But execution risks and competition from tech giants make this anything but a sure bet. I am neutral on the stock for now and prefer to hold off until a clearer path to profitability emerges. The Numbers Tell a Growth Story SoundHound's recent financial performance appears to be a dream for growth investors. The company's first quarter revenue of $29.1 million is more than double the same period last year. Furthermore, management is projecting full-year revenue between $157 million and $177 million, representing approximately 85-109% growth for 2025. Strategic acquisitions of SYNQ3 and Amelia have broadened SoundHound's capabilities while adding new customers. The company has also diversified across automotive, restaurants, and enterprise sectors, with no single customer representing more than 10% of revenue (a healthy sign). Meanwhile, the market opportunity here is genuinely massive. Voice AI technology is experiencing explosive growth, with industry projections showing the market expanding at nearly 30% annually toward $143 billion by 2033. That's not just hype. Companies across many industries are integrating voice technology into everything from drive-thru windows to car dashboards. Well-Positioned with Enterprise Clients Soundhound's platform is built from the ground up for complex, contextual conversations rather than simple command-and-response interactions. This matters in real-world business applications, where customers may have complex requests or require assistance in navigating multiple options. Rather than competing directly with Amazon's (AMZN) Alexa or Alphabet's (GOOGL) Assistant for consumer attention, the company focuses on providing enterprise solutions. It's building custom voice experiences for brands like Burger King (QSR), partnering with automakers like Hyundai (HYMTF), and creating specialized solutions that big tech companies don't typically offer. The Profitability Problem Here's where SoundHound's story gets complicated. Despite impressive revenue growth, the company is burning through cash at a concerning rate. The first quarter showed an adjusted EBITDA loss of $22.2 million, and gross margins are actually shrinking as the company invests in acquisitions and scales its operations. What's most concerning is the lack of clear guidance on when profitability might arrive. Management hasn't provided a concrete timeline for reaching breakeven, leaving investors to wonder whether the current growth is sustainable or merely a byproduct of expensive customer acquisition that won't pay off in the long term. Despite its current differentiated position in the market, the company operates in a space where it's competing with some of the world's most well-funded technology companies. Amazon, Google, and Apple (AAPL) all have voice AI capabilities and the resources to undercut smaller competitors on price or build competing features into their existing platforms. Should these large tech firms decide to target larger enterprise clients (and why wouldn't they at some point), SoundHound's premium pricing and customization advantages could evaporate quickly. For a company struggling to turn a profit, the music could come to a sudden halt. Watching for Inflection Points Market participants are on the lookout for changes in key metrics, including customer retention rates, organic revenue growth separate from acquisitions, and any concrete guidance toward profitability. The stock is highly shorted, with over 30% of shares held in short interest. Positive news among these key metrics could catalyze a further increase in shares, potentially leading to a short squeeze and creating a positive feedback loop for ongoing momentum in the share price. Is SoundHound AI a Good Stock to Buy? SoundHound's stock currently sits below most analyst price targets, which range from $12 to $18. The consensus rating is a Moderate Buy, reflecting cautious optimism tempered by concerns about execution. Piper Sandler's James Fish initiated coverage of SoundHound with an Overweight rating and set a $12 price target, highlighting the company's potential in the AI voice technology sector. He sees a potential total addressable market of $47 billion by 2027, which is still in its early stages of development. Meanwhile, H.C. Wainwright's analyst Scott Buck has lowered the price target to $18 (from $26), while maintaining a Buy rating. He anticipates revenue growth for SoundHound in the latter half of 2025. Additionally, Wedbush's Daniel Ives has downgraded his price target to $15 (from $22), citing a lower valuation multiple, but retains an Outperform rating. The Bottom Line for SoundHound AI The voice AI market opportunity is real, and SoundHound has positioned itself in an interesting niche with genuine competitive advantages. However, this isn't a stock for investors who need steady returns or can't stomach the possibility of significant losses. The company is still proving its business model, and execution risks remain high. The upcoming quarters will be critical in proving whether SoundHound can evolve from a high-potential growth story into a consistently profitable enterprise. Until that transformation takes shape, the stock remains a speculative play marked by significant volatility — one I'm choosing to stay on the sidelines for now.
Yahoo
29-05-2025
- Business
- Yahoo
Why SoundHound AI, Inc. (SOUN) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other best-performing stocks. SoundHound AI grew its share prices by 16.08 percent on Tuesday—a third consecutive day—to finish at $11.12 apiece as investors cheered the company's optimistic rating from an investment firm. On Tuesday, Piper Sandler initiated coverage on SoundHound AI, Inc. (NASDAQ:SOUN), giving it an 'overweight' rating and a price target of $12. According to the investment firm, SoundHound AI, Inc.'s (NASDAQ:SOUN) ASR and NLP architecture offer a competitive advantage in delivering dynamic and real-time conversational AI experiences. Additionally, Piper Sandler gave an optimistic view on SoundHound AI, Inc.'s (NASDAQ:SOUN) Amelia, saying that it sees a $30-billion addressable market by 2027. A software engineer focused on a computer screen, writing code to create a conversational assistant. Lastly, Piper Sandler is optimistic about SoundHound AI, Inc.'s (NASDAQ:SOUN) transition to a subscription-based model, saying that subscription and over-time revenues are expected to contribute 90 percent of total revenues by 2027, or up by 4 percent from two years ago. Overall, SOUN ranks 5th on our list of best-performing stocks. While we acknowledge the potential of SOUN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOUN and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
Yahoo
28-05-2025
- Business
- Yahoo
Why SoundHound AI, Inc. (SOUN) Went Up On Tuesday
We recently published a list of . In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against other best-performing stocks. SoundHound AI grew its share prices by 16.08 percent on Tuesday—a third consecutive day—to finish at $11.12 apiece as investors cheered the company's optimistic rating from an investment firm. On Tuesday, Piper Sandler initiated coverage on SoundHound AI, Inc. (NASDAQ:SOUN), giving it an 'overweight' rating and a price target of $12. According to the investment firm, SoundHound AI, Inc.'s (NASDAQ:SOUN) ASR and NLP architecture offer a competitive advantage in delivering dynamic and real-time conversational AI experiences. Additionally, Piper Sandler gave an optimistic view on SoundHound AI, Inc.'s (NASDAQ:SOUN) Amelia, saying that it sees a $30-billion addressable market by 2027. A software engineer focused on a computer screen, writing code to create a conversational assistant. Lastly, Piper Sandler is optimistic about SoundHound AI, Inc.'s (NASDAQ:SOUN) transition to a subscription-based model, saying that subscription and over-time revenues are expected to contribute 90 percent of total revenues by 2027, or up by 4 percent from two years ago. Overall, SOUN ranks 5th on our list of best-performing stocks. While we acknowledge the potential of SOUN, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SOUN and that has 10,000x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. 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
Associated Press
25-05-2025
- Business
- Associated Press
SOUN Deadline in 2 Days: Kessler Topaz Meltzer & Check, LLP Reminds SoundHound AI, Inc. (SOUN) Investors of Filing Deadline in Class Action Lawsuit
RADNOR, PA - May 25, 2025 ( NEWMEDIAWIRE ) - The law firm of Kessler Topaz Meltzer & Check, LLP ( ) informs investors that a securities class action lawsuit has been filed against SoundHound AI, Inc. ('SoundHound') ( NASDAQ: SOUN ) on behalf of those who purchased or otherwise acquired SoundHound securities between May 10, 2024, and March 3, 2025, inclusive (the 'Class Period'). The lead plaintiff deadline is May 27, 2025. CONTACT KESSLER TOPAZ MELTZER & CHECK, LLP: If you suffered SoundHound losses, you may CLICK HERE or copy and paste the following link into your browser: You can also contact attorney Jonathan Naji, Esq. by calling (484) 270-1453 or by email at [email protected]. DEFENDANTS' ALLEGED MISCONDUCT: The complaint alleges that, throughout the Class Period, Defendants made false and misleading statements and/or failed to disclose that: (1) the material weaknesses in SoundHound's internal controls over financial reporting impaired SoundHound's ability to effectively account for corporate acquisitions; (2) in addition, SoundHound overstated the extent to which it had remediated, and/or its ability to remediate, the material weaknesses in its internal controls over financial reporting; (3) as a result of the foregoing material weaknesses, SoundHound's reported goodwill following an acquisition of Amelia Holdings, Inc. in August 2024, was inflated and would need to be corrected; (4) further, SoundHound would likely require extra time and expense to effectively account for the acquisitions of Amelia Holdings, Inc. and SYNQ3 (which was acquired in January 2024, before the beginning of the Class Period); (5) the foregoing increased the risk that SoundHound would be unable to timely file certain financial reports with the SEC; and (6) as a result, SoundHound's public statements were materially false and misleading at all relevant times. THE LEAD PLAINTIFF PROCESS: SoundHound investors may, no later than May 27, 2025, seek to be appointed as a lead plaintiff representative of the class through Kessler Topaz Meltzer & Check, LLP or other counsel, or may choose to do nothing and remain an absent class member. A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Kessler Topaz Meltzer & Check, LLP encourages SoundHound investors who have suffered significant losses to contact the firm directly to acquire more information. CLICK HERE TO SIGN UP FOR THE CASE OR GO TO: ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP: Kessler Topaz Meltzer & Check, LLP prosecutes class actions in state and federal courts throughout the country and around the world. The firm has developed a global reputation for excellence and has recovered billions of dollars for victims of fraud and other corporate misconduct. All of our work is driven by a common goal: to protect investors, consumers, employees and others from fraud, abuse, misconduct and negligence by businesses and fiduciaries. The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information about Kessler Topaz Meltzer & Check, LLP please visit CONTACT: Kessler Topaz Meltzer & Check, LLP Jonathan Naji, Esq. (484) 270-1453 280 King of Prussia Road Radnor, PA 19087 [email protected] May be considered attorney advertising in certain jurisdictions. Past results do not guarantee future outcomes. View the original release on
Yahoo
21-05-2025
- Business
- Yahoo
SoundHound AI, Inc. (SOUN): A Bear Case Theory
We came across a bearish thesis on SoundHound AI, Inc. (SOUN) on Substack by Stefan Waldhauser. In this article, we will summarize the bears' thesis on SOUN. SoundHound AI, Inc. (SOUN)'s share was trading at $10.27 as of May 19th. SOUN's forward P/E was 147.06 according to Yahoo Finance. Zapp2Photo/ SoundHound AI, a Silicon Valley-based company founded in 2005, develops artificial intelligence technologies for speech, sound, and natural language. After going public via a SPAC merger in 2022, the company reported modest 2023 revenues of $46 million, offset by an operating loss of $64 million. In 2024, amid widespread AI market enthusiasm, SoundHound aggressively expanded by acquiring three unprofitable companies. These acquisitions fueled top-line growth, with Q1 2025 revenues reaching $29.1 million—a 151% year-over-year increase. However, this growth came at a steep cost. Losses ballooned alongside revenue, with SoundHound reporting a staggering $188 million net loss over the last four quarters, despite generating just $102 million in total revenue. Cash burn also exceeded $107 million over that period, meaning the company is spending more than it earns by a wide margin. Despite these troubling fundamentals, SoundHound trades at an astonishing valuation of over $4 billion, or approximately 25 times expected current-year sales—an extreme multiple for a company plagued by integration challenges, an unsustainable cost structure, and mounting losses. This kind of valuation suggests a complete disconnect from underlying business reality, fueled by AI hype rather than sound financial metrics. The stock is arguably worth only a small fraction of its current price, making it a prime candidate for short sellers as the AI frenzy inevitably corrects and valuations normalize in line with fundamentals. SoundHound AI, Inc. (SOUN) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 21 hedge fund portfolios held SOUN at the end of the fourth quarter which was 11 in the previous quarter. While we acknowledge the risk and potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SOUN but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Sign in to access your portfolio
