Stock Price & Analysis

Based on the provided data and recent market events, here's a comprehensive analysis of SOUN stock:

Recent Price Action and Technical Analysis

The stock has experienced significant volatility recently, with a notable decline of 26.7% following Nvidia's divestment announcement. The current price of $10.19 shows the stock is trading:

• Below its 5-day SMA ($10.94)
• Below its 10-day SMA ($12.86)
• Above its 200-day SMA ($8.03)

Key Event Impact Analysis

Nvidia's complete exit from its SOUN position has triggered substantial selling pressure. However, it's important to note that:

• Nvidia's stake was relatively small (1.71 million shares, worth approximately $34 million)
• The position represented a minimal portion of Nvidia's $3.36 trillion market cap

Fundamental Strengths

1. Strong Revenue Growth:

• Q3 2024 showed record revenue with 89% YoY growth
• Customer diversification improved significantly:
  • Largest customer now represents only 12% vs 72% previously
  • Revenue spread across automotive, restaurant, financial services, healthcare sectors

2. Market Opportunity:

• Total addressable market estimated at $140 billion
• Significant growth potential in voice AI technology

Risk Factors

1. Profitability Concerns:

• Company remains unprofitable
• High valuation at ~50x sales even after recent decline

2. Competitive Pressures:

• Faces competition from well-funded rivals
• Risk of larger tech companies entering the space

Recommendation

SELL - Based on the current technical and fundamental analysis:

1. Technical indicators show bearish momentum with prices below key short-term moving averages
2. The loss of Nvidia as a strategic investor could impact market sentiment
3. Valuation remains elevated despite the recent selloff
4. High volatility expected in coming months

For risk-averse investors, it's advisable to avoid the stock at current levels. However, aggressive investors comfortable with high volatility might consider small position entries if the price stabilizes above support levels.

Based on the provided references and data, here is my analysis for SOUN stock price prediction in 2025:

Technical Analysis

The stock has shown significant volatility and upward momentum recently, with the price rising from around $2 in early 2024 to over $10 currently. The technical indicators suggest the stock is in an uptrend but may be overbought in the short term.

Growth Projections

Management has provided clear revenue guidance for 2025:

• 2024 projected revenue: $82-85 million
• 2025 projected revenue: $155-175 million (nearly doubling)
• Expected to achieve EBITDA profitability by end of 2025

Key Growth Drivers

1. Expanding Customer Base:

• Reduced customer concentration risk - largest customer now only 12% of revenue vs 72% last year
• Diversified across automotive, restaurants, financial services, healthcare sectors
• Partnerships with major brands like White Castle, Lucid, Stellantis

2. Technology Leadership:

• Advanced voice AI solutions outperforming human benchmarks
• Proprietary Polaris foundation model trained on billions of conversations
• Strategic acquisition of Amelia AI expanding enterprise capabilities

Price Targets from Multiple Sources

Source	2025 Price Target	Rationale
Wedbush	$26	Strong 2025 growth outlook
H.C. Wainwright	$26	Technology leadership
LongForecast	$13-15	Technical analysis

Risk Factors

1. Valuation concerns:

• Currently trading at ~64x sales
• High expectations built into stock price
• Needs to execute flawlessly on growth plans

2. Competition and technology risks:

• Emerging low-cost AI models could pressure margins
• Early stage of market development
• Not yet profitable

Conclusion

Based on the analysis, SOUN stock price is likely to reach $20-25 by end of 2025, representing a ~100% upside from current levels. This projection is supported by:

• Nearly doubling revenue growth in 2025
• Path to profitability
• Strong competitive position in voice AI
• Multiple analyst price targets in mid-$20s

However, investors should be aware of the high-risk nature of this investment given the rich valuation and early stage of the company's growth.

The S1 support level for SOUN Stock is $9.19 ,The R1 resistant level for SOUN Stock is $14.49.

As of the end of day on 2025-02-26, the price of SOUN Stock was $9.19.

The target price for SOUN Stock according to analyst rating is 18.67, with the highest price target at 26.00 and the lowest at 8.00. Analysts have a Moderate Buy rating on SOUN Stock overall.

The market cap of SOUN is $3.3B.

Based on the provided data and recent market analysis, here's a comprehensive evaluation of SOUN's valuation:

Technical Analysis

The stock shows significant bearish signals with RSI at 33.55 indicating oversold conditions, while MACD (-1.19) remains negative. The stock is trading below all major moving averages (SMA 5, 10, 20, 60), suggesting strong downward momentum.

Valuation Metrics

• P/S (2023): 10.6x
• Current P/B: 38.58x
• No P/E ratio due to negative earnings

Financial Performance

• Revenue growth: 47.4% YoY ($45.87M in 2023 vs $31.13M in 2022)
• Net loss improvement: -$91.71M in 2023 vs -$116.71M in 2022
• Gross margin expansion: 75.35% in 2023 vs 69.16% in 2022
• High cash burn rate with negative free cash flow

Recent Market Events

• Stock recently dropped ~55% from peak after Nvidia's exit from investment
• Revenue diversification improved with largest customer now only representing 12% vs 72% previously
• Expanding partnerships in automotive and restaurant sectors

Overvaluation Indicators

1. Trading at 10.6x sales vs sector average of 4.1x
2. Significant premium compared to AI peers:
   • C3.ai (AI): 7.84x P/S
   • BigBear.ai (BBAI): 2.31x P/S

Conclusion SOUN appears significantly overvalued at current levels based on:

• Excessive valuation multiples compared to peers
• Ongoing substantial losses
• High cash burn rate
• Recent technical weakness
• Loss of major institutional investor (Nvidia)

SoundHound AI, Inc. offers an independent voice artificial intelligence (AI) platform that enables businesses across industries to deliver conversational experiences to their customers. The Company’s technology applications enable humans to interact with the things around them in the same way they interact with each other: by speaking naturally to mobile phones, cars, televisions, music speakers, coffee machines, and other part of the world. The Company's Houndify platform is a Voice AI platform that combines advanced AI with engineering expertise to help brands build conversational voice assistants. The suite of Houndify tools includes application programming interfaces (API) for text and voice queries, support for custom commands, an extensive library of content domains, inclusive Software Development Kit platforms, collaboration capabilities, diagnostic tools, and built-in analytics.

Based on the provided data and references, I'll analyze SOUN's potential price for 2030:

SoundHound AI (SOUN) stock could reach approximately $45-50 by 2030, driven by the company's strong position in the conversational AI market which is expected to grow to $61 billion by 2032. The company's cumulative subscriptions and bookings backlog of over $1 billion and its diversified revenue streams across automotive, restaurant, healthcare and financial services sectors support this projection.

The stock price target is supported by SoundHound's projected revenue growth to $165 million in 2025, with expectations of maintaining strong growth momentum through 2030 as its voice AI solutions continue gaining adoption across multiple industries, particularly in automotive and restaurant sectors where it has already established strong partnerships.

SOUN has a total of 260 employees.