Stock down 63.1% YTD due to class action lawsuit and China tariffs

From Nasdaq: 2025-04-07 11:11:00

SoundHound AI (SOUN) shares have dropped 63.1% YTD and 25% in March, with a 11.8% decline on Friday due to a class action lawsuit. China retaliated against U.S. tariffs with a 34% tariff on American goods starting April 10. SoundHound faces allegations of misleading investors about financial controls and acquisitions.

SoundHound has diversified its customer base, reducing reliance on top clients and expanding into new sectors like healthcare, energy, and government. The company’s revenue grew by 101% in Q4 2024, with projected revenues of $157-177 million in 2025. Strategic partnerships with NVIDIA, Lucid Group, and LG enhance its voice AI capabilities.

The introduction of the voice commerce ecosystem marks a significant step in SoundHound’s business evolution. The company showcased the ecosystem at CES, demonstrating seamless transactions with businesses through its voice assistant. Analysts expect strong growth potential, with a 97% revenue increase in 2025. Class action lawsuit concerns and overvaluation impact investor sentiment.

Analysts show growing optimism for SoundHound, with revised loss per share estimates narrowing. The company’s efforts to diversify, expand, and form partnerships indicate a strong growth strategy. SOUN stock is currently overvalued but has potential for long-term growth. Analysts rate it a “Strong Buy” with a price target implying a 97% upside.

Zacks’ Research Chief highlights SoundHound as a top stock with high growth potential. SoundHound’s innovative solutions and expanding customer base position it for significant gains. Analysts foresee a positive shift in sentiment, making SOUN a compelling investment opportunity. Download Zacks’ report for more stock recommendations.



Read more at Nasdaq: SOUN Stock Down 63.1% YTD: Buying Opportunity for AI Investors?