SoundHound AI is a leader in AI market, but faces challenges from economic uncertainties.

From Yahoo Finance: 2025-04-19 13:00:00

SoundHound AI (NASDAQ: SOUN) is a leader in the AI market, with voice AI technology used in various applications. The stock surged 836% last year but has since pulled back due to concerns about economic slowdown from tariffs. The company’s revenue grew 85% in 2024 to $84.7 million, expanding its client base and working with major companies. SoundHound is positioned in the growing agentic AI market estimated to reach $139 billion by 2033. Despite financial strength with $198.2 million in cash, it is unprofitable with net losses expanding in 2024. Many U.S. CEOs predict a recession within the next six months, raising concerns about SoundHound’s growth given the economic uncertainty. The company may face challenges from President Trump’s trade policies impacting its customers. SoundHound stock remains expensive with a P/S multiple of 31, posing risks for investors. The Motley Fool Stock Advisor team did not include SoundHound AI in their list of top 10 stocks, cautioning against investment due to economic uncertainties. SoundHound’s future performance is uncertain, and potential risks from tariffs suggest a cautious approach to investing in the stock.



Read more at Yahoo Finance: Is SoundHound AI a Buy?