SoundHound AI Shares Rise 45% but Carry High Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Yahoo Finance
- Stock Performance: Since going public via a reverse merger in August 2022, SoundHound AI's shares have risen approximately 45%, which lags behind the S&P 500's 70% return during the same period, indicating relative underperformance in the market.
- Revenue Growth: The company is projected to generate about $173 million in revenue this year, with a market cap of $4.7 billion, resulting in a forward price-to-sales ratio of around 27, highlighting the risks associated with its high valuation.
- Technological Potential: SoundHound AI focuses on intelligent voice recognition and conversational capabilities, currently collaborating with an undisclosed sports car company to develop a personalized in-vehicle AI voice assistant, showcasing its application potential in the premium market.
- Investment Risks: Despite SoundHound AI's early mover advantage in conversational AI, its high valuation and ongoing losses present significant risks for investors, who may face competitive pressures and market volatility in the future.
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.
