SoundHound AI Reports $109.3M Loss Amid $42M Revenue in Q3
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Poor Financial Performance: SoundHound AI reported a record GAAP net loss of $109.3 million in Q3 despite achieving $42 million in revenue, indicating significant challenges in profitability.
- Stock Price Volatility: Following Nvidia's divestment of its stake, SoundHound's stock fell by 2.71%, currently priced at $10.61, reflecting market skepticism about the company's future prospects.
- Intensifying Market Competition: The planned acquisition of AI software company Amelia aims to expand into financial and healthcare sectors, yet SoundHound faces fierce competition from established players like Alexa, making success uncertain.
- Overvaluation Concerns: Despite its challenges, SoundHound trades at a price-to-sales ratio of 30, significantly higher than the industry average, suggesting that market expectations for its future growth may be overly optimistic.
SOUN
$10.7+Infinity%1D
Analyst Views on SOUN
Wall Street analysts forecast SOUN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SOUN is 17.20 USD with a low forecast of 13.00 USD and a high forecast of 26.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
2 Buy
4 Hold
0 Sell
Moderate Buy
Current: 10.900
Low
13.00
Averages
17.20
High
26.00
Current: 10.900
Low
13.00
Averages
17.20
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.
