SoundHound AI Stock Surges Ahead of Earnings Report
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 25 2025
0mins
Should l Buy SOUN?
Source: TipRanks
SoundHound AI Inc's stock has increased by 3.03%, reaching a 20-day high, reflecting strong investor anticipation ahead of its upcoming earnings report.
The stock's rise is attributed to several factors, including the company's acquisition of LivePerson, which enhances its market position and expands its customer base. Additionally, six out of eight analysts have given the stock a 'Buy' rating, with an average price target suggesting a potential upside, indicating robust market confidence in SoundHound's growth prospects. Furthermore, Vanguard Capital Management's significant stake in the company signals strong institutional support, further boosting investor sentiment.
As SoundHound prepares to report its earnings, the market is optimistic about the potential for improved financial performance, driven by a backlog of contracts and anticipated revenue growth. This positive outlook may continue to support the stock's upward momentum.
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Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise
7 Analyst Rating
5 Buy
2 Hold
0 Sell
Moderate Buy
Current: 9.630
Low
11.00
Averages
16.60
High
26.00
Current: 9.630
Low
11.00
Averages
16.60
High
26.00
About SOUN
SoundHound AI, Inc. is engaged in conversational intelligence, offering voice and conversational artificial intelligence (AI) solutions that let businesses offer experiences to their customers. Through its proprietary technology, its voice AI delivers speed and accuracy in numerous languages to product creators and service providers across retail, financial services, healthcare, automotive, smart devices, and restaurants via AI-driven products, such as Smart Answering, Smart Ordering, Dynamic Drive Thru, and Amelia AI Agents. Along with SoundHound Chat AI, a voice assistant with integrated Generative AI, it powers various products and services, and processes billions of interactions each year for businesses. Its developer platform, Houndify, is an open-access platform that allows developers to leverage its Voice AI technology and a library of over 100 content domains, including commonly used domains for points of interest, weather, flight status, sports and more.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Shareholder Confidence: Deutsche Bank quietly increased its stake in SoundHound to 683,420 shares valued at $4.7 million, a 7% rise, signaling institutional investors' confidence in the company's future performance ahead of its earnings report.
- Strategic Acquisition Expansion: SoundHound's acquisition of LivePerson for $43 million aims to drive annual revenue to between $350 million and $400 million by 2027, with at least $100 million expected from existing customer relationships, thereby enhancing its competitive position in the market.
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See More
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- Shareholder Confidence: Deutsche Bank quietly increased its stake in SoundHound to 683,420 shares valued at $4.7 million, a 7% rise, signaling institutional investors' confidence in the company's future performance ahead of its earnings report.
- Strategic Acquisition Expansion: SoundHound's acquisition of LivePerson for $43 million aims to drive annual revenue to between $350 million and $400 million by 2027, with at least $100 million expected from existing customer relationships, thereby enhancing its competitive position in the market.
- Optimistic Market Sentiment: Retail sentiment on Stocktwits for SOUN is extremely bullish, with users expressing strong expectations that the upcoming earnings report and guidance will drive stock price increases, reflecting a robust market outlook for the company's future.
See More
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- Market Pullback Impact: The decline of many popular AI stocks in 2023, driven by the Iran war, inflation, and unclear monetary policies, has diminished investor interest in high-growth and speculative investments, creating attractive buying opportunities for long-term investors.
- Snowflake's Growth Potential: Snowflake's cloud data warehouses assist over 13,000 global customers in centralizing data and processing 6.3 billion queries daily; despite a drop in product revenue growth to 27% in fiscal 2026, it is expected to grow at a 25% CAGR from 2026 to 2029, indicating strong potential in AI applications.
- SoundHound's Market Expansion: SoundHound AI's revenue has increased more than fivefold from 2022 to 2025, and although its stock has declined 14% this year, its acquisitions are expanding its presence in restaurant digitization and conversational AI markets, with a projected 16% CAGR from 2025 to 2028, showcasing long-term growth potential.
- Acquisition-Driven Growth: SoundHound's growth has been primarily driven by acquisitions rather than organic expansion of its core platform, which may compress margins in the short term, but these acquisitions could yield substantial returns in the long run as the AI market expands.
See More
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- Snowflake's Market Performance: Despite a 33% decline in its stock this year, Snowflake's product revenue grew by 27% in fiscal 2026, indicating sustained growth potential in data centralization and AI applications, with a projected 25% CAGR in the coming years.
- Customer Base and Data Processing: Snowflake currently serves over 13,000 global customers and processes an average of 6.3 billion queries daily, with approximately 3,400 listings of data and applications on its marketplace, highlighting its significance in data-driven decision-making and market demand.
- SoundHound AI's Acquisition Strategy: SoundHound AI's revenue has increased more than fivefold from 2022 to 2025, and although its stock has dropped 14% this year, its acquisitions, including SYNQ3, are expanding its presence in the booming restaurant digitization and conversational AI markets, with a projected 16% CAGR from 2025 to 2028.
- Future Profitability Expectations: Analysts expect SoundHound AI to achieve positive adjusted EBITDA in 2027 and 2028, and despite its enterprise value of $4 billion, it is considered an attractive acquisition target that may exceed analysts' expectations.
See More
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- Market Reaction: Despite exceeding financial expectations, the bearish market reaction seems excessive, especially after Twilio's strong earnings report earlier this month, which had previously driven SoundHound AI's stock up by 17% on May 1.
- New Product Launch: The company unveiled its revamped OASIS platform, integrating its voice-controlled services with acquisitions like Amelia, Interactions, and Allset, aiming to provide a more cohesive tool for customers, although the market response has been lukewarm.
- Long-Term Order Conversion: While SoundHound AI is not yet profitable, it is converting a significant backlog of long-term orders into actual revenues, and with the upcoming marketing push for the OASIS platform, there is potential for improved performance in the high-growth sector.
See More
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- Akamai Technologies Rises: Akamai's stock surged 20% after securing an $1.8 billion commitment from a leading U.S. frontier model provider for its Cloud Infrastructure Services, indicating strong demand in the market, while also reporting a first-quarter adjusted earnings beat that bolstered investor confidence.
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See More
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- Significant Revenue Growth: SoundHound AI reported Q1 2026 revenue of $44.2 million, a 52% year-over-year increase that surpassed Wall Street's expectation of $42.56 million, although the stock fell 6.44% in pre-market trading.
- Declining Gross Margin: The company's GAAP gross margin decreased to 31.1% from 36.5% a year ago, primarily impacted by one-time vendor charges, which could negatively affect future profitability.
- Strong Core Business: Excluding acquisitions, core automotive and IoT AI revenue surged 88% year-over-year, indicating robust performance in these rapidly growing sectors, despite an adjusted EBITDA loss widening to $26.7 million.
- Acquisition Plans and Market Opportunity: SoundHound announced plans to acquire digital messaging provider LivePerson, with a projected $500 million revenue opportunity, targeting $350-$400 million in revenue by 2027 and access to 25 Fortune 100 customers.
See More
