SoundHound AI Shares Rise 45% Since SPAC Merger, But Risks Remain
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- Stock Performance: SoundHound AI's share price has risen approximately 45% since its SPAC merger in August 2022, although this growth lags behind the S&P 500's 70% return during the same period, indicating relative underperformance in the market.
- Investor Returns: For investors who purchased shares between late 2022 and early 2024, the stock has surged about 1,000%, reflecting strong short-term growth potential, despite the broader market's stronger performance.
- Market Valuation: With a current market cap of $4.7 billion and projected revenue of $173 million for 2023, SoundHound AI's forward price-to-sales ratio stands at 27, highlighting the high-risk nature of its valuation.
- Competition and Risks: While SoundHound AI holds early mover advantages in the conversational AI space, investors must remain vigilant regarding its ability to meet market demands and fend off competition, as these factors could significantly impact its future stock performance.
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.
