SoundHound AI: Rapid Growth and Challenges in the Voice AI Market

This Artificial Intelligence (AI) Stock Soared 217% Since Nov. 1. Should Investors Expect a Stock Split in 2025?

I've written a lot about SoundHound AI (SOUN 23.70%) this year. In early 2024, the company secured a multimillion-dollar investment from Nvidia, the largest supplier of artificial intelligence (AI) graphics processing units (GPUs) on the planet. This partnership, I believed, was a huge vote of confidence for what was then a relatively small AI business. A lot has changed in recent weeks. Since the start of November, SoundHound shares surged in value by roughly 217%, adding billions of dollars to its market cap. Might the company enact a stock split in 2025? The answer to this question might surprise you. Two reasons why this AI stock is surging in popularity AI is perhaps the hottest category of the market right now. Nvidia, one of the industry's main suppliers, is the second-most valuable company in the world. The stock prices for most AI companies went on a huge run in the first few quarters of 2024. Somehow, SoundHound's shares fell relatively under the radar. Shares jumped in the first quarter of the year after Nvidia revealed a $3.7 million investment in the company. But shares soon cooled off, failing to stage any meaningful run for the rest of the year -- until now. What is it that caught the market's attention? Perhaps the company's diminutive market cap -- the entire company was valued at less than $2 billion at the start of November -- finally turned into a plus. There simply aren't that many small, publicly traded AI companies out there left. SoundHound's relatively small size may have allowed it to stay under the radar, but those days are seemingly over, with the company now valued at more than $5 billion. The biggest factor in SoundHound's recent explosion, however, is likely a large increase in expectations for revenue growth. This summer, quarterly revenue-growth estimates hovered around 50%. Today, those expectations have nearly doubled to 96.7%. That's a huge difference that should mean two things. First, SoundHound likely deserves a higher price-to-sales (P/S) ratio than it formerly had when expectations were lower. And second, perhaps the company has a larger and longer growth runway ahead of it than most analysts realized. As its name suggests, SoundHound is involved in bringing the magic of AI to the world of sound. It has deals in place with fast food restaurants to streamline their drive through order systems, with consumer-product companies to help provide customer support, and with several vehicle brands to bring voice recognition and AI assistants to drivers. Research suggests that this market is growing between 15% and 20% per year. But SoundHound's growth rates are far beyond industry levels, suggesting it has superior technology and market fit versus the competition. Right now, SoundHound's biggest competitors might be Big Tech companies, most of which are developing their own voice AI platforms. But with several hundred patents, plus decades of operating experience, it's reasonable to foresee one of these Big Tech companies scooping up SoundHound and integrating its patents into its own tech stack. The purchase price would be small compared to the spending power of these companies. And SoundHound clearly has something that customers want right now. In these early days of AI, SoundHound is on a promising trajectory. SoundHound clearly has a promising business future even though its stock price is trading at a lofty 63 times sales. If sales keep doubling every year, that pricey multiple could be worth it. Time will tell. But what about a stock split? Is there one around the corner for this hot stock? Likely not. Even after the recent surge, shares still trade between $10 and $15 -- not nearly high enough to typically warrant a stock split. If the company maintains its valuation multiples and growth rates, however, there could foreseeably be a stock split a few years down the road. But for now, a stock split is very unlikely in 2025.

Is SoundHound AI Stock a Buy Now? | The Motley Fool

SoundHound AI (SOUN 23.70%) is successfully tapping into the growing artificial intelligence (AI) market with its conversational AI platform. The company's tech allows companies to offer services that range from voice-enabled ordering at Chipotle to in-vehicle voice commands for Stellantis' car brands. SoundHound now has more than 200 companies using its tech, and investors have taken notice of its growth, driving the company's share price up more than 500% over the past year (as of this writing). The stock's rapid rise may leave some investors wondering if SoundHound AI's stock is worth buying right now. Let's take a closer look to find out. There's a good reason why investors have been drawn to SoundHound. The company's growth has been impressive, as evident from its third-quarter results (which ended Sept. 30). Sales soared 89% in the quarter to $25.1 million, and management issued revenue guidance for 2025 of $165 million at the midpoint, nearly double 2024's estimated sales of $83.5 million. SoundHound also improved its customer concentration and now relies less on a handful of large customers for the majority of its revenue. Just 12% of sales are attributed to its large customers now, down from 72% last year. This is a healthier revenue mix and means SoundHound's business would be less affected by one or two large customers leaving. It's also diversified the types of customers it has. Last year, 90% of its sales came from customers in the auto industry. Now, the company's revenue is more evenly distributed across the auto industry, restaurants, financial services, healthcare, and insurance companies, with each contributing from 5% to 25% of sales. Even with SoundHound's impressive revenue diversification and growth in less than a year, investors should know that the company isn't profitable. SoundHound reported a non-GAAP (generally accepted accounting principles) net loss of $0.04 per share in the third quarter, an improvement from its loss of $0.06 in the year-ago quarter. It's not uncommon for high-growth companies to be unprofitable, but investors should know that it could take a while for SoundHound to earn a profit. The average analysts' estimate is for SoundHound to have a loss of $0.24 per share for 2024 and for losses to narrow to $0.17 in 2025. In addition, SoundHound's stock is expensive. The company's shares have a price-to-sales ratio of 64.8 right now; that's a hefty price tag considering the S&P 500's (^GSPC -0.00%) P/S ratio is 3.1. SoundHound's stock looks too expensive to buy right now. That doesn't mean it doesn't have more room to run, but some of the stock's gains have likely come from investors' AI euphoria in the market. If I were considering buying SoundHound right now, I'd wait until the stock pulled back a little before picking up shares. But if you're adamant about buying SoundHound, you might want to at least make sure it's a small position and doesn't take up too much of your portfolio.

After an Incredible 578% Run, Will This Artificial Intelligence (AI) Stock Dazzle in 2025? | The Motley Fool

We will soon put 2024 in the history books, and what a year it was for the stock market. So far, the S&P 500 index has reached a new all-time high a whopping 50 times. There are multiple reasons for the rise, like a resilient economy and expectations that the Federal Reserve will keep lowering interest rates. However, perhaps the largest reason is artificial intelligence (AI) enthusiasm. Some believe that the stock market is in a bubble, or at least overextended, and there are definitely stocks that appear overvalued. However, the AI market is massive and expanding quickly, as shown below. The AI market could more than quadruple 2024 revenues by 2030, so companies (and investors) are scrambling for a piece of it. AI covers a lot of different applications, one of which is voice recognition technology. This tech communicates with people conversationally and has many applications. One of the leading companies in the field is SoundHound AI (SOUN 12.60%), whose stock has rocketed 578% in 2024 as of this writing. Will this continue in 2025? The financial implications of conversational speech recognition are gigantic. Order-taking at drive-thru restaurants and automated customer service will save companies vast sums of money on employee costs. Well-known companies like White Castle, Papa John's, Applebee's, and many more are testing or deploying SoundHound's tech. SoundHound just reported that Torchy's Tacos rolled out the tech at their locations. Automotive is another massive market using SoundHound. The tech accesses a vast database to answer questions like "What's the most scenic route?" "What will the weather be like in Detroit this weekend?" or "Where is a nearby Italian restaurant, and what is the fastest way to get there?" This is a significant advancement from the days of "call so and so" and "play music." I believe that voice recognition tech like this will soon be the standard at drive-thrus and automobiles. Statista predicts the market will more than double by 2030, as you can see below. Revenue is growing faster than the market for SoundHound. SoundHound reported an 89% year-over-year increase in revenue to $25 million in the third quarter. It also expanded its customer base significantly in 2024. The company expects sales of $82 million to $85 million for 2024, potentially doubling sales with $165 million as the guidance midpoint of 2025. The revenue growth is incredible; however, investors should note that the company is not profitable and does not produce positive cash flow from operations. This makes the stock riskier than profitable companies. SoundHound's valuation is in question after its recent epic run that saw the stock soar 171% over the past 30 days. The company trades for 33 times its potential $165 million in sales for 2025 based on its $5.5 billion market cap at the time of this writing. That is quite high for any company, let alone one that isn't profitable. Analysts put an average price target on SoundHound of $8.07, well below the current price of $14.62. I am enthusiastic about SoundHound's future and was recently high on the stock; however, investors should consider waiting for a pullback after this run.

Where Will SoundHound AI Stock Be in 1 Year? | The Motley Fool

If you put $10,000 into SoundHound AI (SOUN -5.54%) stock one year ago, you have $61,800 today. That's an eyewatering return of 618%. The company has emerged as an early winner in artificial intelligence (AI) as it seeks to dominate the market for speech and audio-related AI solutions. But past performance is no guarantee of future returns. Let's dig deeper into SoundHound AI's fundamentals to determine if its bull run can continue. So far, most sustainable AI-related growth has come from the infrastructure side of the opportunity, where chipmakers like Nvidia provide the hardware needed to run and train these algorithms. Software has been harder to monetize because it is still in an experimental stage. But that isn't stopping SoundHound from trying to push the envelope. The company has been a leader in sound and audio technology since 2005, when it created a music recognition platform called Midomi. It went on to develop speech-enabled virtual assistants for cars before quickly recognizing the synergies between this tech and the generative AI of conversational chatbots like ChatGPT. By combining speech recognition with large language models, SoundHound can help machines interact with people in a truly lifelike way. The most exciting application of this tech might be in humanoid robots, which could soon be capable of holding conversations. But SoundHound has set its sights on less futuristic use cases like restaurant drive-thrus, customer services, and automotive assistants. Soundhound's third-quarter revenue jumped 89% year over year to $25.1 million as clients gravitated toward its voice AI solutions. The company monetizes its tech through a software-as-a-service business model wherein the user gets access in return for a periodic fee. This strategy is attractive because it can lead to stable recurring revenue. New clients include Mexican airline operator Grupo Aeroméxico, French financial services company BNP Paribas, and American nursing home operator Aveanna Healthcare Holdings, which shows that SoundHound's software is finding applications in a variety of industries. SoundHound is also driving growth through synergistic acquisitions like the $80 million buyout of Amelia AI, which operates an AI agent for backend business tasks. The merger will give SoundHound more clients and could add $45 million to its expected revenue of $150 million in 2025. But while SoundHound is expanding, its business looks far from profitable. Third-quarter operating losses jumped 132% year over year to $33.7 million. And while losses are normal for growth-oriented companies as they scale up, SoundHound doesn't seem to have a path to profitability right now, as losses are still rising dramatically. And the company will probably continue to burn money for the next few years. Over the long term, SoundHound will have to scale up its business model and create an economic moat against competition. That's because speech recognition software is not a new technology. (It can be found in most mainstream smartphones.) And nothing is stopping other companies from synergizing this tech with generative AI. One year is probably not enough time for SoundHound to build a moat or create a path to profitability. So investors are left betting on a speculative stock that probably won't hold on to its recent momentum. That said, SoundHound's deals with major automakers like Stellantis and Hyundai Motor suggest its technology may have established an early lead. SoundHound is also backed by AI hardware giant Nvidia, which purchased around $3.7 million worth of its shares late last year. SoundHound's future looks bright. However, investors may want to wait for more information on its finances before considering a position in the stock.

3 Big Question Marks for SoundHound AI Stock Heading Into 2025 | The Motley Fool

It's been a stellar year for voice artificial intelligence (AI) company SoundHound AI (SOUN -4.75%), which, as of last week, has soared more than 600% since January. The stock has become one of the more prominent AI stocks to own of late, with its market cap now at more than $5 billion. The stock rose to popularity this year after investors learned that Nvidia had invested in the business. However, whether or not it can continue rallying next year will likely depend on answers to three crucial questions. SoundHound has been generating some impressive growth this year, but it has been doing that without improving its bottom line. While that may not be a huge problem for growth investors since the business is still in its early stages, it can be a much more important issue as things inevitably slow down. Over the three-month period ending Sept. 30, SoundHound's sales rose by 89% to $25.1 million. But operating expenses totaled $58.9 million and increased by a much faster rate of 112%. As a result, even with the massive increase in the top line, the company's operating loss more than doubled from $14.5 million a year ago to $33.8 million this past quarter. Investors may be willing to look past that for now, but if that trend continues, it could weigh on the stock's performance. This past quarter, SoundHound's growth rate jumped, but that was largely due to the acquisitions of Amelia Holdings and SYNQ3, which significantly expanded and diversified its customer base and revenue. Previously, the company was heavily dependent on the automotive sector, whereas now it generates revenue from many other industries. The company's year-over-year growth rate looks impressive, but the crucial number for investors to watch is the quarter-over-quarter rate. Although there can be some seasonality affecting the results, that comparison can give investors a potentially better way to gauge how well the business is growing. It's a quicker way of analyzing how the business is growing when factoring in recent acquisitions, especially if SoundHound doesn't break out organic growth (it didn't on its most recent earnings numbers). If the company isn't able to demonstrate that it can grow organically, that's a potential red flag since it may highlight a lack of strong demand for its core business. In the previous quarter, which ended before the company's acquisition of Amelia closed in August, its year-over-year growth rate was much lighter at 54%. Cash flow can potentially be a big concern for SoundHound investors in 2025. As the company expands, it may have a greater need for cash. And if the business isn't generating positive cash flow, it may need to resort to issuing stock to raise cash. That's a problem because more shares on the market results in dilution and puts downward pressure on the stock, potentially leading to a declining share price. Over the past three quarters, the company has burned through $75.8 million, which is more than the $54.4 million it spent over the same period last year. If the rate of cash burn doesn't drastically improve next year, investors may need to brace for more stock offerings. The average share count has increased by 49% over the past year to more than 360 million. SoundHound AI stock has been a great investment in 2024. But the business still looks unproven. If acquisitions are propping up its growth numbers, that can paint a misleading picture of just how well the company is doing. And with its losses growing bigger, and more stock offerings potentially on the way next year, investors shouldn't assume that it is going to remain a hot stock in 2025. Unless the company can address the three issues noted above relating to its profitability, growth, and cash flow, I would steer clear of SoundHound AI. There's still too much uncertainty surrounding the business to make it a good buy right now.

Missed Out On Nvidia's Run-Up? My Best Under-the-Radar AI Stock to Buy and Hold.

Over the last five years, Nvidia stock is up a staggering 2,500%. That means a $10,000 investment in Nvidia stock made five years ago would now be worth nearly $260,000. Yet the fact of the matter is that a lot of investors may have missed out on Nvidia's rise, or at least a significant portion of it, simply because they missed the early signs of a multibagger in the making. With that in mind, let's have a look at another stock -- one that might still be in the early innings of a multiyear uptrend: SoundHound AI (SOUN 23.70%). As you might imagine, this field is of growing importance, as the number of AI models is surging. Organizations large and small are increasingly adopting AI models to streamline their operations or enhance the appeal of their products to consumers. For example, voice-activated technology is becoming the standard on most new automobiles, as consumers increasingly expect to use voice commands to navigate, place calls, send texts, or get information while driving. Similarly, restaurants, particularly those in the fast-food or fast-casual segment, are ramping up their use of voice-activated ordering kiosks as a way to cut costs and improve order accuracy. Therefore, it's no surprise that SoundHound has targeted both industries. It boasts numerous clients across both sectors, including Honda, Hyundai, Five Guys, and Firehouse Subs. Why SoundHound AI could be the next big thing in AI While it's true that SoundHound is a leading player in an up-and-coming segment of the AI market, that alone isn't enough to make it the next big thing in AI. After all, the giants of the industry (Apple, Amazon, and Alphabet) are also focused on the AI voice market. However, SoundHound may have a couple of key competitive advantages over its big-tech rivals. First, the company differs from its deep-pocketed competitors in this key respect -- it's happy to help brands develop their own "voices." SoundHound means this both figuratively and literally. The company notes that voice assistants are crucial to consumers' impressions of a brand because humans tend to anthropomorphize (assign human characteristics) to voice assistants. Case in point: Would you want the voice assistant in your car to sound male or female? Young or old? Serious or funny? SoundHound, which hasn't created an iconic voice AI, like Siri or Alexa, can work with clients to help them develop the voice that best suits their needs. The second opportunity for SoundHound is that its big-tech rivals may choose to gobble up this upstart, rather than compete with it. As of this writing, SoundHound's market cap is $3.7 billion. For the tech heavyweights, that's pocket change. To sum up, SoundHound is well-positioned to capitalize on the AI boom. As more and more organizations seek out ways to use voice AI to cut costs, SoundHound's stock could grow significantly in value. Moreover, investors shouldn't rule out a potential acquisition, given the company's modest market cap. In any event, investors looking for an up-and-coming name in the AI field should consider SoundHound AI.

SoundHound: This AI stock rose 578% in 2024, how will it perform in 2025; why investors are gung-ho about this company? Here are its unique selling points

Artificial Intelligence (AI) technology stocks have been the backbone of the US stock market for the current year, and companies that are reliant on AI, have shown a massive surge, and even stock indices have shown some amazing growth, backed by AI stocks. AI stocks are currently booming and are showing a massive surge for the better part of 2023 and 2024, but there is one AI company that needs a special mention, which is SoundHound, an AI-reliant company, whose stocks are currently going through the roof, depicting an over 578% surge in 2024, and is expected to go even higher by the end of the year. Meanwhile, it is also being projected that this AI stock has the ability to cross its 2024 records in the coming year, something that US investors are heavily banking on. Even though there are serious inflation and recession fears in the United States, which may end up leaving a dark trail on the US stock market in 2025, AI stocks are being though of as a savior, as these companies are making up for all the lost market by stocks from other sectors. For starters, SoundHound is on of those companies who have a knack for AI enthusiasm, and this very feature will help them rise even further when January 2025 arrives, suggest reports. Also Read : Does the US Constitution allow Donald Trump to end birthright citizenship as President? Even though there are beliefs that the stock market is currently in a bubble that is about to burst soon, AI stocks' growth is suggesting quite the opposite, as they are projected to stay afloat even amid high waves of inflation and recession fears in the US stock markets, which is a great sign for the coming days. Also Read : After Diddy will Kanye West be arrested? Rapper accused of sending explicit messages to employee in planned $150 million lawsuit Is SoundHound a top stock? SoundHound is indeed a superb stock in the US stock market, as the company's growth and value has increased in an unimaginable manner in 2024 itself. Will SoundHound stocks grow in 2025? There are reports and projections suggesting that SoundHound stocks, backed by its AI enthusiasm, will shatter some major records at the US stock market.

Why SoundHound AI Stock Is Skyrocketing Today | The Motley Fool

SoundHound AI stock is surging today after the company was named a leader in the 2024 Frost Radar Report from Frost & Sullivan. Specifically, the company's Amelia platform was named a leader in conversational AI for enterprise healthcare. Frost & Sullivan published its 2024 Frost Radar report yesterday, and SoundHound AI's share price is seeing huge bullish momentum thanks to positive coverage for the company's Amelia platform in the report. Frost & Sullivan sees the market for conversational AI in healthcare growing to reach $2.34 billion in annual sales by the end of 2027. The company's report suggests this corner of the market will grow at a compound annual growth rate (CAGR) of 17.2% through the end of that forecast period. Frost & Sullivan lead industry analyst Nitin Manocha said SoundHound's Amelia platform stands out for its performance and innovation pipeline. The company acquired Amelia in September for $80 million, and Manocha believes the integration of SoundHound's voice AI capabilities into Amelia's platform for enterprises opens the door for huge growth opportunities. Thus far, SoundHound AI's core sources of business have been in categories that include restaurants and automotive. Along those lines, the company announced on Dec. 11 that it was bringing its AI ordering and customer service software to Church's Texas Chicken restaurants. Last week, the conversational AI specialist announced it was bringing its software to Torchy's Tacos. Frost & Sullivan's positive coverage of SoundHound AI's position in the enterprise healthcare market highlights a major new growth opportunity for the company. The business is still in the very early stages of tapping into potential growth in the category, and it's possible that it could rapidly become a major performance driver. Recent contract wins and coverage of emerging opportunities have helped power an incredible bull run for the company. Its share price is now up 703% across this year's trading, and the business is undeniably seeing some encouraging adoption momentum. On the other hand, big gains for the stock mean the company is now valued at roughly 75 times this year's expected sales. With such a highly growth-dependent valuation, investors should understand that SoundHound AI stock's explosive potential also comes with a high level of risk.

Why SoundHound AI Stock Skyrocketed This Week | The Motley Fool

SoundHound AI announced some notable news this week, and the stock also got a boost from other factors. SoundHound AI (SOUN 12.60%) stock soared over the past week of trading. The company's share price rose 61.2% from the previous week's market close, according to data from S&P Global Market Intelligence. SoundHound AI stock made big gains this week after the company hosted an investor presentation and announced that a new restaurant partner had rolled out its software. The company's share price also gained ground thanks to macroeconomic and political developments and meme-stock momentum. SoundHound AI's chief financial officer, Nitesh Sharan, participated in the UBS Global Technology and AI conference on Dec. 4. During his presentation at the conference, Sharan demonstrated and discussed the company's conversational artificial intelligence (AI) software. The following day, SoundHound announced that Torchy's Tacos had adopted the company's AI ordering and customer service technologies. The software was rolled out at 130 Torchy's Tacos locations and has the capacity to handle 100% of incoming calls and take customer orders. While bringing its software to 130 new restaurant locations probably isn't a huge deal in the grand scheme of things, investors took it as an indication that the software could see much wider adoption -- and SoundHound stock rocketed higher on the news. While there was some significant business-related news that pushed SoundHound AI's valuation higher over the last week, the stock probably also benefited from meme-stock momentum. Investors have broadly become more risk-tolerant lately, and some are looking to score explosive wins on short-term trades. Correspondingly, meme-stock trades have come roaring back into fashion. In addition to meme-stock momentum, SoundHound AI and other artificial intelligence stocks got a boost from Donald Trump's announcement that he plans to appoint venture capitalist David Sacks as AI and crypto czar under his new administration. The news seems to support the idea that the incoming Trump administration will take steps to promote the evolution of the artificial-intelligence industry. Macroeconomic news was also favorable for growth stocks over the last week. November's jobs numbers showed improvement in the labor market, and the Federal Reserve is expected to cut interest rates later this month. On the heels of this past week's gains, SoundHound AI stock is up 608% across this year's trading. The gains mean the company is now valued at roughly 68 times this year's expected sales. So while it's possible that new contract wins and partnerships could propel more explosive gains for the company's share price, investors should understand the incredible run for the stock has pushed its risk profile significantly higher.

What's Going On With SoundHound AI Stock? - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN shares are down 5.1% to $14.30 Tuesday afternoon. The pullback could be to profit-taking following a remarkable year-to-date rally exceeding 500%. The surge in 2024 comes amid enthusiasm for its voice AI technology, particularly its Smart Ordering system. This week's recent pullback might reflect investors locking in profits after the stock's extraordinary run. What's Been Happening: Last week, SoundHound announced that its Smart Ordering system is now deployed at all 130 Torchy's Tacos locations. This voice AI technology enables natural speech phone ordering, handles custom requests, answers menu queries and manages multiple calls simultaneously. Torchy's CTO highlighted its reliability and impact on customer experiences, allowing staff to focus on food preparation. SoundHound's solutions, which are active in over 10,000 global locations, process more than 100 million interactions annually. A consumer study underscores the rising acceptance of voice AI, indicating transformative possibilities for automating and enhancing restaurant operations. Read Also: Wall Street Struggles For Direction, Tesla Flirts With Record Highs, Bitcoin Tumbles Below $95,000: What's Driving Markets Tuesday? Market News and Data brought to you by Benzinga APIs

SoundHound AI Shares Are Falling: What's Going On? - SoundHound AI (NASDAQ:SOUN)

SoundHound AI Inc SOUN stock is trading lower by 5.3% to $14.21 during Monday's session, potentially due to profit-taking and cooling off after an extraordinary year-to-date rally of over 500%. The stock has been a standout performer, driven by excitement around its voice AI technology. Recent gains have been fueled by SoundHound's Smart Ordering system now used in Torchy's Tacos and other global locations, which was announced last week. Read Also: Nvidia Hit With Antitrust Probe in China, Stock Slides What To Know About The Partnership: SoundHound AI's voice AI Smart Ordering system is now deployed across all 130 Torchy's Tacos locations, enabling customers to place phone orders using natural speech. Trained on Torchy's menu, the system handles custom orders, answers questions about menu items and manages multiple calls simultaneously. Torchy's CTO praised its reliability and role in enhancing guest experiences while freeing staff to focus on food preparation. SoundHound's solutions are used in over 10,000 global locations, processing 100+ million interactions. A consumer study suggests growing acceptance of voice AI, signaling its transformative potential in automating and improving restaurant operations. Read Also: Tesla Model Q Priced Below $30,000 After Subsidies To Reportedly Launch In First Half Of 2025 How To Buy SOUN Stock By now you're likely curious about how to participate in the market for SoundHound AI - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so. In the the case of SoundHound AI, which is trading at $13.92 as of publishing time, $100 would buy you 7.18 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, SOUN has a 52-week high of $16.07 and a 52-week low of $1.62. SOUNSoundHound AI Inc$14.19-5.47%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Prediction: This Artificial Intelligence (AI) Company Will Be Acquired in 2025 | The Motley Fool

One of my big forecasts for 2025 is that acquisitions will make a comeback. Over the last couple of years, abnormally high inflation in combination with rising borrowing costs inspired some businesses to focus more on internal efforts and push off any ideas about acquisitions or special projects. But now that inflation is cooling and the Federal Reserve has begun to taper interest rates, corporate balance sheets are strengthening. Moreover, I think it's only a matter of time until the Federal Trade Commission (FTC) chairwoman, Lina Khan, resigns before President-elect Trump is sworn into office. One of my main predictions for 2025 is that mergers and acquisitions will see a comeback amid an improving macroeconomic picture and the high likelihood that leadership at the FTC changes under the incoming administration. One company that I see as an attractive acquisition candidate is SoundHound AI (SOUN 12.60%), which specializes in voice-recognition assistants powered by artificial intelligence (AI). Below, I'm going to detail why speech recognition is an important component of the AI ecosystem, and explore why SoundHound AI looks like a logical acquisition prospect. Voice-enabled AI uses natural language processing (NLP) and machine learning to train devices to understand and process words and phrases. Common applications of this technology include Internet of Things (IoT) appliances such as smart thermostats or assistants like Amazon's Alexa. The AI embedded in these tools can help you set reminders, obtain general information by asking a question, or even change the temperature throughout your home -- all by leveraging your voice and removing any manual or physical steps in between. According to Statista, the global total addressable market (TAM) for speech recognition is estimated to reach $15.9 billion by 2030 -- slightly more than double what it is worth today. While there is clear demand for AI-powered speech recognition, which businesses are actually investing in this technology? The answer may surprise you. In addition to Amazon, the companies listed below have invested significantly into AI voice assistants over the last several years: I see a few reasons SoundHound is an attractive acquisition candidate. First, the market for AI speech recognition is expected to grow considerably over the next several years. Furthermore, many of the world's most influential businesses have already invested significantly into this type of technology. To me, SoundHound AI represents another stitch in the broader AI voice fabric -- and one that comes with some unique features. It primarily focuses on business-to-business (B2B) end markets such as restaurants, hospitality, and automaking. However, the company also developed an app that competes with Shazam, and so it also has products that tackle a more business-to-consumer (B2C) opportunity as well. I find the trends detailed above quite interesting. SoundHound AI is witnessing impressive demand, but the company is yet to reach the scale needed to grow profitably. Considering that big tech is already investing heavily in voice-powered AI, I think it's safe to say that SoundHound AI is going to have trouble competing with these businesses given its limited financial horsepower. The one drawback with SoundHound AI is valuation. At a price-to-sales multiple (P/S) of 46, the stock is far from a bargain. But with that said, the company's market cap is roughly $5 billion. For most logical acquirers, such a price tag isn't a problem. These factors have me thinking it would be better off functioning within a larger organization with a more robust balance sheet. In other words, having access to the resources of larger businesses could potentially speed up SoundHound AI's progress considerably.

SoundHound AI Shares Are Surging Friday: What You Need To Know - SoundHound AI (NASDAQ:SOUN)

SoundHound announced a deal to provide voice AI-powered drive-thru ordering solutions, aiming to improve efficiency and reduce wait times. Shares of SoundHound AI, Inc. SOUN are trading higher Friday following a series of favorable announcements highlighting the company's advancements in conversational AI technology. Here's what you need to know. What To Know: On Thursday, the company's Amelia Conversational AI Platform was recognized as a leader in Frost & Sullivan's 2024 Frost Radar: Enterprise Conversational AI in Healthcare. The report identified SoundHound AI among 14 market leaders out of more than 100 vendors analyzed, citing its innovation and growth in transforming healthcare operations. The platform leverages advanced natural language processing and large language models to improve patient engagement and streamline administrative workflows, including appointment scheduling and IT support. "SoundHound's Conversational AI Platform stands out for its exceptional performance on both innovation and growth indices is driven by its strong innovation pipeline and an intelligent focus on administrative and operational processes for healthcare organizations,"said Nitin Manocha, Senior Industry Analyst at Frost & Sullivan. The Frost & Sullivan report also projected that the enterprise conversational AI market in healthcare would reach $2.34 billion by 2027, growing at a compound annual rate of 17.2%. Analysts noted that SoundHound's acquisition of Amelia positions the company among the largest publicly traded conversational AI firms, with opportunities to expand use cases and deliver value in healthcare. "With SoundHound's recent acquisition of Amelia, the company now ranks among the largest publicly traded conversational AI companies. By integrating SoundHound's advanced voice AI capabilities with Amelia's enterprise platform, the company has a tremendous opportunity to unlock more complex use cases and drive real value in the healthcare sector," added Manocha. Additionally, SoundHound announced a partnership with Church's Texas Chicken to implement a voice AI-powered drive-thru ordering solution. The initiative aims to streamline operations, reduce wait times, and enhance staff efficiency. "Integrating our technology into Church's Texas Chicken restaurants marks a significant milestone in drive-thru innovation," said James Hom, Chief Product Officer at SoundHound AI. SOUN Price Action: SoundHound shares were up 24.8% at $17.05 at the time of writing, according to Benzinga Pro. Read Next: Teamsters Authorize Strike At Amazon's New York Warehouses: 'Get Ready For A Fight' Image Via Shutterstock. SOUNSoundHound AI Inc$13.831.17%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

SoundHound AI CEO Keyvan Mohajer sells $12.5 million in stock By Investing.com

Keyvan Mohajer, CEO of SoundHound AI , Inc. (NASDAQ:SOUN), recently executed significant stock transactions, according to a filing with the Securities and Exchange Commission. The transactions come as the stock has shown remarkable performance, with a 571% year-to-date return according to InvestingPro data. On December 6 and December 9, Mohajer sold a total of 833,435 shares of Class A Common Stock, amounting to approximately $12.5 million. The shares were sold at prices ranging from $15.0009 to $15.0412 per share, notably near the stock's 52-week high of $16.07. In conjunction with these sales, Mohajer also acquired shares through the exercise of stock options. On December 6, he acquired 368,041 shares at a price of $2.1777 each, and on December 9, he acquired an additional 465,394 shares at the same price. These transactions were conducted under a pre-arranged Rule 10b5-1 trading plan established in August 2024. Following these transactions, Mohajer holds 2,299,148 shares of SoundHound AI. In other recent news, SoundHound AI has experienced significant developments in its operations and financial performance. A notable advancement is the successful implementation of its Amelia AI agents in Apivia Courtage, a French wholesale broker. The AI agents have effectively handled over 100,000 customer service calls, reducing direct queries by 20%. SoundHound AI also reported a robust financial performance with its third-quarter revenue for 2024 reaching $25.1 million, surpassing estimates of $22.6 million. This financial upswing is attributed to organic demand growth and the impact of recent mergers and acquisitions. As a result of these positive developments, the company has revised its 2025 revenue projections to range between $155.0 million and $175.0 million. Furthermore, H.C. Wainwright has responded to these positive results by raising its price target for SoundHound AI shares to $8.00, maintaining a Buy rating. Despite these developments, the company continues to focus on its strategy for future quarters, prioritizing revenue growth, gross margin expansion, and the pursuit of positive adjusted EBITDA. These recent developments highlight SoundHound AI's strategic growth and its successful integration of AI solutions in various sectors, positioning the company for further success.

SoundHound AI's VP of engineering sells shares worth $10 million By Investing.com

In recent transactions, Majid Emami (NS:EMAM), Vice President of Engineering at SoundHound AI , Inc. (NASDAQ:SOUN), sold shares worth approximately $10 million. The sales occurred on December 6 and December 9, with share prices ranging from $15.0006 to $15.0381. The transactions come as the stock has seen remarkable gains, with InvestingPro data showing a nearly 600% return over the past year. The company's market capitalization now stands at $5.55 billion, with technical indicators suggesting overbought conditions. These transactions were part of a pre-established trading plan under Rule 10b5-1. Additionally, Emami exercised stock options on the same dates, acquiring shares at a price of $2.1777 per share. The total value of shares acquired through this exercise was approximately $1.45 million. Following these transactions, Emami retains direct ownership of 735,685 shares of SoundHound AI. In other recent news, SoundHound AI has made significant strides with its partnership with Apivia Courtage, a French wholesale broker. The collaboration has led to the deployment of SoundHound's Amelia AI Agents to manage over 100,000 customer service calls. This has reduced direct customer queries to Apivia Courtage by nearly 20%, allowing the broker to reallocate its human workforce to more complex tasks. SoundHound AI has also reported strong financial results, with its third-quarter revenue for 2024 reaching $25.1 million, surpassing the projected $22.6 million. This success is attributed to the demand growth and the impact of recent mergers and acquisitions. Following this development, H.C. Wainwright has upgraded its price target for SoundHound AI shares to $8.00, while maintaining a Buy rating. The company has revised its revenue projections upward for the fourth quarter of 2024 and the full year of 2025, expecting 2025 revenues to range between $155.0 million and $175.0 million. SoundHound AI has a robust cash position of $135.6 million and minimal debt, providing flexibility for future growth initiatives or potential mergers and acquisitions. These are recent developments in SoundHound AI's business operations.