From Nasdaq: 2024-05-31 05:45:00

SoundHound AI (NASDAQ: SOUN) went public in 2022 at $8.72 per share before soaring to $14.98. However, the stock now trades at less than $5 due to missed forecasts and losses. Despite this, its Houndify platform competes with tech giants and its market is expected to grow at a rate of 25% until 2030.

It missed revenue growth estimates of 41% in 2022 and had a gross margin of 69%. SoundHound laid off half its workforce to stabilize margins in 2023. Revenue is projected to grow 42-68% in 2024, but its enterprise value of $1.6 billion puts its stock at 22 times this year’s sales.

The company ended the first quarter of 2024 with $226 million in cash and has manageable debt. Investments in SYNQ3, Nvidia Drive integration, and partnerships could drive expansion. SoundHound’s stock may not double soon but could be worth nibbling on, with potential for significant growth in the long term.



Read more at Nasdaq: Is SoundHound AI Stock a Buy Now?