From Nasdaq: 2024-05-15 09:10:00

1. SoundHound AI, an AI stock listed on NASDAQ, has seen its shares surge by 156% this year, with a peak increase of 320%. However, the company is not profitable and may need to raise cash in the future, as indicated by its recent announcement to sell up to $150 million worth of shares.

2. With no defendable competitive advantage or moat in the tech industry, SoundHound AI faces tough competition from tech giants like Alphabet and Microsoft. Despite a 73% revenue growth year over year, the company still struggles with profitability, increasing its net loss to over $33 million in the last quarter.

3. SoundHound AI’s stock is highly volatile, driven by investor interest following Nvidia’s stake in the company. It may not be suitable for conservative investors due to uncertainty about its long-term prospects. The Motley Fool Stock Advisor team did not include SoundHound AI in their list of top stocks, signaling potential risks associated with investing in the company.



Read more at Nasdaq: 3 Things You Need to Know Before Buying SoundHound AI Stock