SoundHound AI ‘SOUN’ Stock Soars This Week

SoundHound AI 'SOUN' Stock Soars This Week

SoundHound AI stock has embraced the AI excitement, rising from $4 to $7 per share within 24 hours.

SoundHound AI, a company known for its voice-enabled AI technologies, has recently witnessed a remarkable surge in its stock value. This surge is attributed to a broader frenzy surrounding AI stocks trading bot in the market. Within just 24 hours, SoundHound AI’s stock price skyrocketed from $4 to $7 per share which reflects investor enthusiasm for companies operating in the AI sector.

  • SoundHound AI (SOUN) experienced a significant leap in value both yesterday and overnight.
  • At the beginning of the week, shares were priced under $4, but now they trade above $7.
  • The company, known for its voice software for AI applications, is set to announce its earnings this week.

On February 26th, the stock of SoundHound AI (traded on NASDAQ under the ticker symbol SOUN) experienced a significant increase amidst the ongoing excitement surrounding artificial intelligence (AI) technology.

During the trading session that day, the company’s shares saw a remarkable 46% increase in value. Moreover, the upward trend continued overnight, with an additional 25% rise in stock price. This rapid escalation meant that shares priced at $4 each earlier in the day were now being sold for over $7 as the market opened the following morning.

As a result of this enhancement, the market capitalization of SoundHound AI, which stood at under $1 billion just a week prior, has now reached $1.7 billion. This increase in market capitalization reflects the heightened investor interest and confidence in the company’s prospects within the AI sector. For more, you can explore Artificial Intelligence stocks under $10 for 2024.


SoundHound AI SOUN Stock Soars This Week

Why is SoundHound AI intriguing?

SoundHound AI emerges as a captivating prospect due to its leading-edge voice AI technology, which has garnered an impressive clientele base across various industries.

Automotive Triumph

SoundHound AI boasts notable success in the automotive sector, counting major players like Honda, Hyundai, Kia, and the Stellantis group among its clients.

Restaurant Dominance

The company has penetrated deeply into the restaurant industry, partnering with renowned brands such as Beef O’Brady’s, Krispy Kreme, Oracle Food and Beverage, Toast, and White Castle.

Expansive Market Reach

With a total addressable market exceeding $160 billion, SoundHound AI targets not only automotive and restaurant sectors but also endeavors in entertainment, IoT, financial services, healthcare, retail, and beyond.

Impressive Growth Trajectory

SoundHound AI exhibits remarkable growth, evident in its third-quarter 2023 results, where revenue surged by 19% year-over-year and 52% sequentially, accompanied by a robust gross margin of 73%.

Is Buying SoundHound AI Stock Before Thursday Advisable?

SoundHound provided a broad revenue guidance range for Q4 in November, projecting between $16 million and $20 million. Additionally, the company anticipates achieving positive adjusted EBITDA during the quarter. If SoundHound surpasses the average analysts’ estimate of $17.75 million and meets its EBITDA target, its stock could see significant gains.

However, rushing to purchase SoundHound AI stock hastily to capitalise on better-than-expected quarterly results is risky.

That said, SoundHound possesses substantial long-term potential with its voice AI technology and continues to exhibit robust growth. For aggressive investors seeking exposure to a promising yet relatively small AI stock, SoundHound AI merits serious consideration.

Is Investing $1,000 in SoundHound AI Right Now a Good Idea?

Before jumping into SoundHound AI stock, it’s important to weigh a few factors.

The Motley Fool Stock Advisor analysts recently unveiled their top 10 stock picks for investors to consider, and SoundHound AI didn’t cut. However, the 10 stocks recommended by the team have the potential to yield substantial returns in the foreseeable future.

Reflect on the case of Nvidia, which was once featured on a similar list on April 15, 2005. If you had invested $1,000 at the time of the recommendation, your investment would have grown to $484,578!

Motley Fool’s Stock Advisor service offers investors a straightforward roadmap to success, complete with portfolio-building guidance, regular analyst updates, and two fresh stock picks each month. Since its inception in 2002, the Stock Advisor service has outperformed the S&P 500 by more than fourfold.

Stop, Children, What’s That Sound?

Despite the absence of specific company-related updates to justify the sudden increase in stock value, other AI-related companies like C3.ai (traded on NYSE under the symbol AI), which is scheduled to report earnings on February 28th, also saw significant rises in their stock prices.

SoundHound, originally a voice recognition company catering primarily to automobile manufacturers, has expanded its market presence into restaurants and call centres. Its technology enables seamless interaction with customers even during peak hours. Notably, Nvidia (traded on NASDAQ under the symbol NVDA) recently invested in SoundHound following an initial funding round of $75 million in 2017.

With its earnings report scheduled for February 29th, analysts are eyeing a revenue projection of $17.75 million and closely monitoring its EBITDA, a key metric often considered in potential acquisition scenarios.

However, the recent surge in stock value suggests that SoundHound must surpass expectations to maintain its momentum. Despite expectations of reaching $100 million in revenue this year compared to $38 million last year, investors are now paying 17 times the revenue for the stock.

Nevertheless, if SoundHound’s estimate of a $160 billion market opportunity proves accurate and the company demonstrates a leading market position, the stock could experience further growth. Although Tipranks indicates three analysts covering SOUN stock all recommending a buy, the current stock price has exceeded their price targets by $2. Additionally, sentiment among traders on Stocktwits appears overwhelmingly bullish.

SOUN Stock: What Comes Next?

The company specializes in developing voice software for AI applications and has become a focal point for investors seeking exposure to the booming AI industry. As of today, SoundHound’s stock has surged significantly, reflecting investors’ heightened interest and confidence in the company’s prospects within the AI sector.

SOUN Stock

The company specializes in developing voice software for AI applications and has become a focal point for investors seeking exposure to the booming AI industry. As of today, SoundHound’s stock has surged significantly, reflecting investors’ heightened interest and confidence in the company’s prospects within the AI sector.

Final Verdict

This rising coincides with SoundHound AI’s upcoming earnings report, adding to the anticipation and speculation surrounding the company’s performance. Investors are closely monitoring SoundHound AI’s financial results, hoping for positive indicators that could further bolster the stock’s value amidst the ongoing AI frenzy in the market.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *