The stock is currently trading at $13.82, down from its recent high of $24.98 in late December 2024. The stock has experienced significant volatility, with a -2.36% decline in the last regular trading session and RSI at 42.37, indicating neutral momentum.

Fundamental Analysis

Revenue Growth: Management projects 2025 revenue between $155-175 million, nearly double 2024's guidance of $82-85 million
Client Diversification: Reduced dependency on single clients - largest client now only contributes 12% of revenue versus 72% a year ago
Industry Expansion: Successfully diversified from 90% automotive sector concentration to less than 25% per sector

Recent Analyst Actions

Northland Capital Markets: Hold rating with $8 price target (Jan 14, 2025)
HC Wainwright: Strong Buy rating with $26 price target (Jan 13, 2025)
Wedbush: Buy rating with $22 price target (Dec 16, 2024)

Risk Factors

High valuation at approximately 90x sales
Not yet profitable with ongoing cash burn
Significant competition from major tech companies like Google

Recommendation Given the recent pullback from all-time highs and mixed technical signals, coupled with high valuation multiples despite strong growth prospects, it would be prudent to wait for a better entry point before establishing new positions. The stock appears overvalued at current levels despite positive business momentum.

What is price prediction 2025 for SOUN Stock?

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

SoundHound AI (SOUN) is expected to reach $20-22 by end of 2025, driven by projected revenue doubling to $165-175 million and expanding use cases in automotive and enterprise AI. However, near-term volatility could see the stock test $10-12 support levels first due to current high valuation concerns and profitability challenges.

The stock's significant pullback from recent highs of $24+ indicates profit-taking and valuation concerns, but strong revenue growth trajectory and AI market expansion support a bullish long-term outlook.

What is surpport and resistant level for SOUN Stock?

The S1 support level for SOUN Stock is $12.9 ,The R1 resistant level for SOUN Stock is $16.9.

What is the current price of SOUN Stock?

As of the end of day on 2025-01-24, the price of SOUN Stock was $15.99.

What is the target price of SOUN Stock?

The target price for SOUN Stock according to analyst rating is 15.25, with the highest price target at 26.00 and the lowest at 6.00. Analysts have a Moderate Buy rating on SOUN Stock overall.

What is the market cap of SoundHound AI Inc?

The market cap of SOUN is $5.9B.

Is SoundHound AI Inc (SOUN) overvalued?

Based on the provided data and recent market analysis, SOUN appears significantly overvalued at current levels. Here's why:

Valuation Concerns

Trading at an extremely high P/S ratio of nearly 100x, which is over 30 times higher than the S&P 500 average of 3x
Current $8 billion market cap implies 75x annualized revenue
Most recent quarter revenue was only $25.1 million

Recent Price Action

Stock has surged over 660% in the past year
Currently trading around $13.82 after recent pullback from $24.98 high in late December
Heavy trading volume of 64.8M shares on Jan 17

Fundamental Weaknesses

Gross margins declined significantly to 49% in Q3 from 73% year ago
Continued net losses of $21.8 million in Q3
Cash position dropped from $226M to $136M in just 6 months
Revenue growth largely inorganic through acquisitions rather than organic growth

Analyst Sentiment

Mixed ratings with price targets ranging from $6 to $26
Recent downgrades from Northland Capital (Hold) and Barclays (Hold)
Concerns about competition from major tech companies like Google

Key Risks

Operates in highly fragmented markets with increasing competition
Reliance on acquisitions suggests organic scalability challenges
Current valuation requires maintaining high growth rates for several years to justify
Cash burn rate remains concerning despite recent capital raises

The stock appears significantly overvalued based on both fundamental and valuation metrics. While the company has promising technology and partnerships, the current price level appears unsustainable given weak fundamentals, heavy reliance on acquisitions, and intense competition in the AI voice recognition space.

What is SoundHound AI Inc (SOUN)'s business?

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.

What is price prediction 2030 for SOUN Stock?

Based on the provided data and market analysis, here's the price prediction for SOUN stock by 2030:

SoundHound AI (SOUN) stock is projected to reach approximately $45-50 by 2030, driven by the company's expanding market presence in voice AI technology across automotive, restaurant, and financial services sectors. The strong revenue growth guidance targeting $165 million by 2025 and a $1 billion order backlog supports this bullish outlook, though significant volatility should be expected given the company's current unprofitability and competitive pressures from major tech players.