Latest news with #voiceRecognition
Globe and Mail
4 days ago
- Business
- Globe and Mail
Prediction: Investors Are Unlikely to Win With SoundHound AI Stock, and Here's Why
As SoundHound AI (NASDAQ: SOUN) has developed voice-recognition technology driven by artificial intelligence (AI) that has attracted high-profile clients, more investors have taken an interest in the company. Between that technology and rapid revenue growth, it may look like a stock poised to drive outsize returns. Unfortunately, SoundHound AI continues to deal with challenges that may call its investment case into question. Unless the company can mitigate those challenges, the stock is unlikely to succeed, and here's why. Why investors are tuning into SoundHound AI stock In many respects, SoundHound AI appears to be punching far above its weight. It has developed AI-based voice recognition technology, promoting it as "next-generation AI." With that, its technology can help customers perform tasks via voice prompts. This has drawn the interest of numerous corporate clients, particularly in the automotive industry. Moreover, the company has attracted restaurants, financial services businesses, telecom companies, and others to its platform. Despite its market cap of $4.1 billion, SoundHound AI has successfully earned business while competing with much larger players. It generated $29 million in revenue in the first quarter of 2025, a 151% increase from year-ago levels. And the company turned a profit in the first quarter, a goal that might have appeared out of reach a year ago quarter. During the quarter, it earned more than $129 million, up from a $33 million loss in the first quarter of 2024. That likely helped boost the stock. After a sell-off at the beginning of the year, it turned higher following the release of the report. Consequently, shares are up by about 115% over the previous 12 months. SoundHound AI's daunting challenges However, investors are likely to find some serious concerns as they look at the stock's financials more closely. The most obvious oddity is that net income was more than four times its revenue. And that occurred at a time when operating expenses for the first quarter were $99 million, which was more than three times the company's revenue in that quarter. It also reported a change in the fair value of contingent acquisition liabilities. This amounted to a $176 million noncash benefit that turned SoundHound AI profitable for the quarter. Hence, when examining the negative free cash flow of $19 million, the "profit" is not as promising as it appears. Currently, the company has almost $246 million in liquidity. This means it can sustain the current pace of negative cash flow for approximately three more years before having to add debt or issue more shares. Furthermore, it competes with numerous companies, including tech heavyweights Alphabet, Amazon, and Microsoft. All of those companies hold cash positions that far surpass SoundHound's market cap, meaning if one of these companies wants to compete directly, it is in a strong position to take market share from SoundHound AI. Also, even though the business may look like a buyout candidate, Nvidia recently sold its SoundHound AI stock, and no other tech giant has taken a position in the company. Knowing that, the case for the stock may rely too much on hope, which does not put its shareholders in a strong position. Think twice about buying SoundHound AI stock Under current conditions, investors are unlikely to succeed with this stock as a long-term investment. Admittedly, SoundHound AI has developed some compelling voice-driven technology with AI, and that has attracted some of the world's best-known enterprises as clients. Nonetheless, its first-quarter profit came from a one-time benefit, and with operating expenses far outpacing revenue, long-term profitability appears out of reach. Moreover, the company has to compete with some of the world's largest companies, which have plenty of resources. Unless the rapid revenue growth starts to translate into a dramatically improved financial performance, investing in SoundHound AI is unlikely to pay off for investors in the long term. Should you invest $1,000 in SoundHound AI right now? Before you buy stock in SoundHound AI, 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 SoundHound AI 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor 's total average return is979% — a market-crushing outperformance compared to171%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 June 2, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
Yahoo
24-05-2025
- Business
- Yahoo
With SoundHound AI Stock Down 41%, Should You Buy the Dip?
Shares of the voice recognition specialist have plummeted in value this year. But sales are expected to grow by nearly 100% as the overall AI market expands. SoundHound still trades at a hefty multiple, making it suitable only for patient investors. 10 stocks we like better than SoundHound AI › SoundHound AI (NASDAQ: SOUN) had a terrific 2024. Last year, shares spiked in value by more than 800%. So far in 2025, it's been a different story, with shares losing more than 40% over a span of just five months. And yet when you look at analyst expectations for revenue growth, the picture looks extremely rosy, with 87% sales growth expected this year. Could this be your chance to buy into a high-growth AI stock on the cheap? Yes, but there are two risks you'll want to understand before jumping in. The AI revolution is in full swing. Spending on AI technologies is expected to accelerate in the years to come despite a strong upward trajectory in both 2023 and 2024. According to one estimate, the AI market is expected to grow from around $370 billion in value today to more than $2.4 trillion by 2032. That's a compound annual growth rate of more than 30% for nearly a decade! Companies like SoundHound should benefit immensely from this rise in spending. As its name suggests, SoundHound's business model revolves around sound. More specifically, it has developed a voice AI suite that can help companies integrate voice AI into their own businesses. Drive-thru windows are a prime example, as are customer support lines and in-vehicle personal assistants. SoundHound has already signed on partners including Applebee's, Honda, and Planet Fitness to pilot its technologies in all of these use cases. By integrating AI voice assistants into these verticals, SoundHound believes customers can lower costs while increasing efficiency and customer satisfaction over the long term. SOUN Revenue (TTM) data by YCharts Unsurprisingly, SoundHound's revenue has taken off with the rest of the AI industry. This year, analysts expect sales to jump by nearly 90%. Another 25% jump is expected in 2026. Long term, SoundHound has a large total addressable market. Most estimates believe the voice AI market will be worth somewhere between $40 billion and $50 billion over the next decade, growing at a similar annual rate as the rest of the AI market. With a total sales base of just $102 million, SoundHound should be able to maintain double-digit sales growth for years to come. But before you jump in, make sure you understand the key risks involved. SoundHound should experience heavy growth in the years to come. But the market has already priced in much of this growth. Shares trade at an astounding 42.6 times sales. Plus, the company's research and development budget pales in comparison to better-funded Big Tech competitors. Over the last 12 months, the company has invested just $80 million into R&D. That compares to gigantic multibillion-dollar R&D budgets for Big Tech peers. SOUN PS Ratio data by YCharts Does all of this mean that SoundHound stock is too expensive and that the business will fail in the face of better-financed competitors? Not exactly. The multibillion-dollar research and development budgets commanded by Big Tech competitors largely aren't dedicated to voice AI applications. And the portion that is often isn't meant to compete directly with SoundHound. Apple's Siri assistant, after all, isn't in use at drive-thru windows or customer support lines. Meanwhile, even high upfront valuations can be justified with enough growth. After factoring in the next two years of expected growth, SoundHound would trade at less than 20 times projected sales. That's still pricey, but far less than today's valuation portrays. Should you buy the dip on SoundHound? Only if you're an aggressive growth investor looking for maximum upside. You'll also need an investing horizon longer than your average stock -- think five to 10 years minimum. With a market cap of only $4 billion, SoundHound's upside potential is clear. But investors should expect heavy volatility and the potential for heavy downside. Before you buy stock in SoundHound AI, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and SoundHound AI 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 $639,271!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $804,688!* Now, it's worth noting Stock Advisor's total average return is 957% — a market-crushing outperformance compared to 167% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple and Planet Fitness. The Motley Fool has a disclosure policy. With SoundHound AI Stock Down 41%, Should You Buy the Dip? 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
Arabian Business
16-05-2025
- Business
- Arabian Business
AB Majlis podcast: Do we really need AI in banking? Mashreq's head of tech weighs in
Mashreq is exploring conversational banking systems using voice recognition while maintaining that humans will remain essential for complex financial decisions, according to the bank's technology chief. Mohamed Abdel Razek, who oversees technology, data and transformation at Mashreq , outlined the bank's AI strategy during an interview on Arabian Business's AB Majlis podcast, describing it as 'trustworthy AI-infused banking'. 'CX, or customer experience, is the first pillar, and that is your chatbot voice automation. Eventually you can do banking with voice only,' Abdel Razek explained. 'Why can't I say 'hello, Mashreq, how are you?' 'Oh, hi, Mr. Mohamed,' they recognise my voice as a biometric print. This is called conversational banking. We're not there yet, but can it be done now? Probably, yes.' AI vs. human banking relationships Abdel Razek identified four quadrants guiding Mashreq's AI implementation: customer experience, productivity, growth, and protection against fraud. Despite technological advances, he emphasised that banking fundamentally remains built on trust. 'Would you take a home loan with a computer and sign a 25-year commitment?' he questioned when discussing fully automated services, suggesting that complex financial decisions will continue to require human judgment. While the bank is exploring automated decision engines for credit approval to handle higher volumes, Abdel Razek noted the challenge of maintaining quality as banking becomes more inclusive: 'Traditionally, a bank would have half a million clients, a million clients. What if you have 7 million clients?' Abdel Razek also described potential future ATM experiences that could leverage conversational interfaces. 'We could have automations where, if you go to the ATM, you scan your card and it asks, 'Do you want your last transaction?' You respond 'Yes,' and you don't have to input amounts… It would be conversational, either at the ATM or over voice.' He clarified that while such features aren't currently implemented, they represent the direction of possible development. UAE's digital infrastructure advantage Mashreq's AI strategy aligns with the UAE's broader ambitions in artificial intelligence. The bank, which operates in 11 countries including the US, UK, and Hong Kong, is leveraging the UAE's digital infrastructure advantage. 'The UAE is pioneering in this field. There's a huge interest in becoming a key player, not only in the region, but at the global stage,' Abdel Razek said. 'UAE specifically had the digital infrastructure, so it's really easy, or easier to adopt and become leading.' He cited the country's advanced airport systems featuring facial recognition as an example of the national digital foundation that financial institutions are building upon. Regarding future developments, Abdel Razek pointed to agent-to-agent banking as an emerging frontier: 'Eventually your agent talking to the bank's agent to do certain journeys is probably where we're going in the near future.' As AI-powered cyber threats increase, Mashreq has implemented AI systems for pattern recognition to block attacks: 'As the threat actor has access to AI… we also have to use AI to detect when this is happening.' The AB Majlis podcast by Arabian Business features weekly episodes available on Spotify and Apple Podcasts. Tune in to AB Majlis every Monday To listen to the full episode and gain a comprehensive understanding of doing business in the Gulf region, visit our RSS feed or check out AB Majlis on Spotify, Apple Podcasts, and other platforms. Episodes are also available on: Tune in every Monday for weekly episodes that will help you stay ahead of the curve and enrich your understanding of the Gulf region.
Yahoo
12-05-2025
- Business
- Yahoo
Speech-To-Text API Market to Reach $5 Billion by 2024 in the Short Term and $21 Billion by 2034 Globally, at 15.2% CAGR: Allied Market Research
The global speech-to-text API market is experiencing rapid growth due to rising demand for voice recognition technology in smart devices and cloud-based services. Businesses are adopting these solutions to enhance productivity, accessibility, and customer experiences, driving further expansion. WILMINGTON, Del. , May 12, 2025 /PRNewswire/ -- Allied Market Research published a report titled, "Speech-to-text API Market - Global Opportunity Analysis and Industry Forecast, 2024-2034," valued at $5 Billion in 2024. The market is expected to grow at a CAGR of 15.2% from 2025 to 2034, reaching $21 Billion by 2034. Key factors fueling this growth include the increasing adoption of AI-powered voice recognition, demand for real-time transcription in healthcare and legal sectors, and the rise of voice-enabled smart devices. In addition, advancements in natural language processing (NLP) and cloud-based solutions are accelerating market expansion. Report Overview: The speech-to-text API market is driven by the rising demand for voice-enabled applications in smart devices, virtual assistants, and customer service automation. Advancements in AI, machine learning, and NLP enhance accuracy, fueling adoption across healthcare, legal, and education sectors. The shift toward cloud-based solutions and the need for real-time transcription in multilingual environments further propel growth. In addition, increase in remote work trends and the push for accessibility compliance boost market expansion. However, high development costs and data privacy concerns hinder market growth, especially in regulated industries. Accuracy challenges with accents, background noise, and dialects limit adoption. Integration complexities with legacy systems and a lack of skilled professionals also pose barriers, slowing down implementation in some enterprises. Request Sample Pages: Key Segmentation Overview: The speech-to-text API market is segmented on the basis of component, enterprise size, application, industry vertical, and region. By Component: Software and Services. By Enterprise Size: Large Enterprise and SMEs. By Application: Contact Center And Customer Management, Content Transcription, Fraud Detection & Prevention, Risk & Compliance Management, Subtitle Generation, and Others. By Industry Vertical: BFSI, IT & Telecom, Healthcare, Retail & E-Commerce, Media & Entertainment, Education, Government & Defense, and Others. By Region: North America (U.S. and Canada) Europe (UK, Germany, France, Italy, Spain, and rest of Europe) Asia-Pacific (China, Japan, India, Australia, South Korea, and rest of Asia-Pacific) LAMEA (Latin America, Middle East, and Africa) Market Highlights By Component, the software segment dominated the market in 2024 and is expected to continue leading due to increasing demand for cloud-based, AI-powered transcription solutions and seamless API integrations across platforms. By Enterprise Size, the SMEs segment witnessed significant growth due to cost-effective, scalable speech-to-text solutions that enhance productivity, customer engagement, and compliance without heavy infrastructure investment. By Application, fraud detection and prevention is expected to register the highest growth, due to the rising need for real-time voice analytics, call monitoring, and AI-driven scam detection in financial and telecom sectors. By Industry Vertical, the education sector is expected to register the highest growth, due to the adoption of voice-enabled e-learning tools, lecture transcription, and accessibility features for students with disabilities. Report Coverage & Details: Report Coverage Details Forecast Period 2025–2034 Base Year 2024 Market Size in 2024 $5 Billion Market Size in 2034 $21 Billion CAGR 15.2 % Segments covered Component, Enterprise Size, Application, Industry Vertical, and Region Drivers Rise in need for voice-based devices Opportunities Innovation in speech-to-text solutions for disabled students Restraints Transcribing audio from multichannelMultilingual support for captioning and subtitling Enquiry Before Buying: Factors Affecting Market Growth & Opportunities: The global speech-to-text API market is experiencing rapid expansion, driven by several key factors. Increase in adoption of AI and ML has significantly enhanced transcription accuracy, making these solutions indispensable across industries such as healthcare, legal, and customer service. The proliferation of smart devices and voice-enabled applications, including virtual assistants, further fuels demand. In addition, the shift toward cloud-based solutions offers scalability and cost-efficiency, particularly for SMEs. The growing emphasis on accessibility and compliance with regulations also promotes market growth, as organizations seek inclusive communication tools. However, challenges such as data privacy concerns, integration complexities with legacy systems, and accuracy limitations with diverse accents & noisy environments restrain market potential. High development costs and a shortage of skilled professionals further hinder adoption. Despite these barriers, emerging opportunities in fraud detection, real-time analytics, and multilingual support present significant growth avenues. The education sector, in particular, offers untapped potential with the rise of e-learning and voice-enabled educational tools. As NLP and deep learning technologies advance, the market is poised for further innovation, creating opportunities for vendors to develop specialized, industry-specific solutions. Regulatory Landscape & Compliance: The speech-to-text API market is significantly influenced by evolving data privacy and security regulations, such as GDPR (Europe), CCPA (California), and HIPAA (healthcare sector), which mandate strict handling of voice data. Compliance with these laws is critical, as APIs often process sensitive personal and financial information. Providers must implement end-to-end encryption, anonymization techniques, and secure storage to meet regulatory standards. In addition, industry-specific regulations—such as PCI-DSS for payment processing and FERPA in education, impact deployment, requiring tailored solutions. The rise of AI ethics guidelines also affects development, ensuring transparency and bias mitigation in speech recognition algorithms. Non-compliance risks hefty fines and reputational damage, pushing vendors to adopt auditable, privacy-by-design frameworks. Meanwhile, regions with laxer data laws have see faster adoption but face future regulatory tightening. Overall, adherence to compliance standards remains a key competitive differentiator in this rapidly growing market. Technological Innovations & Future Trends: AI-Powered Real-Time Transcription: Startups and tech giants are leveraging deep learning and neural networks to deliver ultra-accurate, low-latency speech-to-text solutions. For example, Deepgram uses end-to-end AI for enterprise-grade transcription, while offers real-time APIs for developer integrations. Edge Computing & On-Device Processing: Companies like Sonantic (acquired by NVIDIA) and Picovoice are enabling offline speech recognition for privacy-sensitive applications, reducing reliance on cloud infrastructure. Multilingual & Dialect Adaptation: Innovations in self-supervised learning allow APIs to support underrepresented languages and dialects. Platforms like Speechmatics and Google's Chirp are expanding access for non-English speakers. Voice Analytics for Fraud Prevention: Fintech and call-center industries are adopting speech-to-text APIs with emotion/sentiment analysis to detect scams, monitor compliance, and enhance customer interactions. Buy this Complete Report (422 Pages PDF with Insights, Charts, Tables, and Figures) at: Regional Insights The Asia-Pacific region emerged as the dominant force in the speech-to-text API market, primarily due to its massive smartphone user base and rapid digital transformation across key economies. Countries like China, India, and Japan drove growth through widespread adoption of AI-powered voice assistants and smart devices. Government initiatives promoting digital infrastructure and smart city projects further accelerated market expansion. The region's thriving e-commerce sector and booming BPO industry created substantial demand for real-time transcription services. Latin America is poised for explosive growth in the speech-to-text API market, fueled by increasing digitalization across multiple sectors. Brazil and Mexico are leading this charge, with growing adoption in fintech, telehealth, and customer service applications. The region's unique linguistic needs are driving demand for sophisticated Spanish and Portuguese language processing capabilities. Rising smartphone penetration and improved internet infrastructure are making cloud-based voice solutions more accessible. Key Players: Major players in the speech-to-text API market include Amazon Web Services, Inc., IBM Corporation, Google LLC, VoiceCloud, Descript, Microsoft, Voicebase, Inc., Amberscript Global B.V., Speechmatics, TurboScribe, Apple, Inc., Deepgram Inc., AssemblyAI, Inc., Twilio Inc., and Trint. These companies are focusing on expanding their service offerings, strategic partnerships, and enhancing digital accessibility, customer outreach, and financial inclusion in the speech-to-text API industry. If you have any questions, please feel free to contact our analyst at: Key Strategies Adopted by Competitors In August 2023, Descript acquired SquadCast, a move that enhances Descript's capabilities by integrating reliable remote recording directly into its platform. This acquisition allows Descript users to access SquadCast's remote recording features for free, making it easier to record, edit, and publish audio and video content all in one place. The integration aims to streamline the workflow for podcasters and content creators, offering high-quality recordings even if internet connections are unstable. In April 2025, Trint launched Trint Live, an innovative feature that offers real-time speech-to-text transcription. It allows users to capture and transcribe live conversations, meetings, and events seamlessly across both desktop and mobile devices. Trint Live supports over 30 languages and can automatically detect and transcribe the spoken language, making it a powerful tool for breaking down language barriers. This feature is designed to enhance productivity by providing immediate access to editable transcripts, which can be shared and collaborated on in real-time. In March 2025, Twilio partnered with Cedar to enhance patient billing experiences using AI-powered solutions. This partnership leverages Twilio's scalable communications technology to streamline patient interactions and improve accessibility. Cedar utilizes Twilio's SMS capabilities for bill notifications and appointment reminders and integrates Twilio's Voice API for secure phone payments. In addition, Twilio's ConversationRelay service will enable AI-powered voice agents to handle patient billing inquiries, reducing wait times and improving satisfaction. AVENUE- A Subscription-Based Library (Premium on-demand, subscription-based pricing model): AMR introduces its online premium subscription-based library Avenue, designed specifically to offer cost-effective, one-stop solution for enterprises, investors, and universities. With Avenue, subscribers can avail an entire repository of reports on more than 2,000 niche industries and more than 12,000 company profiles. Moreover, users can get an online access to quantitative and qualitative data in PDF and Excel formats along with analyst support, customization, and updated versions of reports. Get an access to the library of reports at any time from any device and anywhere. For more details, follow the link: About us: Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of "Market Research Reports" and "Business Intelligence Solutions." AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain. Contact:David Correa1209 Orange Street,Corporation Trust Center,Wilmington, New Castle,Delaware 19801 +1-503-894-6022Toll Free: +1-800-792-5285UK: +44-845-528-1300India (Pune): +91-20-66346060Fax: +1-800-792-5285help@ Logo: View original content: SOURCE Allied Market Research 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
