From Nasdaq: 2024-11-13 20:55:03

Shares of SoundHound AI (NASDAQ: SOUN) dropped 17.1% after releasing its Q3 2024 report, despite beating revenue and earnings estimates. The stock had a steep run-up prior to the release, and investors may be concerned about profitability guidance for 2025. Nvidia’s ownership stake in SoundHound does not justify buying shares.

SoundHound AI’s Q3 2024 numbers show revenue grew 89% year-over-year, but losses widened. The company acquired Amelia in Q3, expanding its reach in conversational AI. SoundHound expects Amelia to contribute over $45 million to revenue and be accretive to earnings in the second half of 2025.

CEO Keyvan Mohajer is optimistic about SoundHound’s growth potential in conversational AI. The company raised its revenue guidance for 2024 and 2025 but did not provide earnings guidance. Investors should monitor SoundHound’s progress towards profitability and liquidity metrics.

While SoundHound AI operates in a high-growth AI sector, its lack of profitability and liquidity concerns should be noted. The Motley Fool Stock Advisor did not include SoundHound AI in its list of 10 best stocks to buy now. Consider the potential for significant returns with other recommended stocks. 1. The stock market saw a significant increase today, with the S&P 500 reaching a new record high of 4,423.15 points. This marks a 0.8% increase from the previous day, driven by strong performances from tech and healthcare sectors.

2. In international news, a ceasefire has been agreed upon in the conflict between Israel and Hamas after 11 days of intense fighting. The ceasefire comes after widespread international calls for de-escalation and has been welcomed by leaders around the world.

3. The latest unemployment report shows a decrease in jobless claims, with 444,000 Americans filing for unemployment benefits last week. This marks a significant improvement from previous weeks and indicates a positive trend in the labor market as the economy continues to recover from the impact of the pandemic.



Read more at Nasdaq: SoundHound AI Stock Sinks 17% Despite Beating Earnings and Revenue Estimates and Raising 2024 and 2025 Guidance