SoundHound Drops 57% From Its Peak. Is SOUN Stock a Buy Now?

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Soundhound (Soun), Technology Technology Company has seen behind intelligence conversation solutions (AI), that its shares have overcomed in recent months. After height to $ 24.98, the stock decreased by more than 57 % of that peak and almost 49.4 % decreased. Although the stock is still 158 % over the past 12 months, the last sale may erode a large value of the maximum market.

Part of the declining pressure from the NVIDIA (NVDA) decision came out of its location in SoundHound. This step, in addition to the broader economic uncertainty, and the cheot investors and contributed to the sharp decline of the share. In addition to anxiety is the high company evaluation. Soundhound is currently trading (P/S) with a sharp -price rate of more than 46.6X, which means that the market is already pricing in many positives.

However, the basics of SoundHound show signs of strength. The growth of its revenues is accelerating. In the first quarter of 2025, the higher SoundHound line increased by 151 % on an annual basis. This follows a great increase of 101 % in Q4 2024, 89 % in Q3, and 54 % in Q2. The acceleration in the growth rate of the highest demand for the increasing demand for the sound technology that AI SoundHound is driven.

The company’s momentum looks sustainable as its sought -handed market expands quickly with companies across multiple sectors that adopt AI’s sound technology. Moreover, with a variety of customer base and a strong sales pipeline, Soundhound is in a good position to take advantage of the increasing demand.

Soundhound provides great results, and the momentum is likely to maintain its work. In the latest quarterly report, the company announced the revenues of the first quarter of $ 29.1 million, an increase of 151 % on an annual basis. Moreover, Soundhound has taken steps to diversify her revenue customer base. For the first time, no single customer represented more than 10 % of the total revenue, a noticeable transformation that reduces the risk of customer concentration and reflects the company’s increasing access to different industries.

Customer request building. Reservations continue to climb, sequentially on a year on an annual basis, which reflects the increasing interest in soundhound solutions. This traction is especially visible in the restaurant sectors and institutions, where site growth and customer service applications accelerate. Meanwhile, in the automotive sector, Soundhound benefits from the high average selling prices, thanks to the deeper integration of artificial intelligence.

The administration is still confident, referring to the large pipeline and the Total Treatment Market (TAM). This places Soundhound for great growth in the coming years. An increasing number of original equipment and restaurant chains appear enthusiastic to solve the company’s audio trade, which raises growth in the future.

Soundhound strategic acquisitions also bear fruit. SYNQ3 integration already helps to increase SoundHound in the current product products range to a broader customer base. Albest Acquisition enables the company to connect restaurant partners with its increasingly car customers, creating a unique environmental system. Meanwhile, the acquisition of Soundhound helps to storm the new industries, while expanding its presence with the current merchants.

On the operational front, SoundHound continues to evaluate and improve some old -sided old -sided contracts, either enhancing their profit or perfectly recycling. These efforts are expected, along with increasing revenues, are expected to pay serial improvements in the modified Ebitda throughout the year.

It is worth noting that the company is still focusing on its path to profitability. With many disciplinary measures in the already in place, SoundHound Repeat his expectation to reach the modified Ebitda profitability by the end of 2025.

Given the evaluation fears and total economic certainty, they do not support all analysts to buy Sun’s shares. As a result, the arrow carries a “moderate purchase” classification.

However, the current withdrawal may represent a convincing entry point where Soundhound is still in the early stages of a convincing growth story, with strong revenues expanding and increasing demand for AI’s audio technology across industries.

On the date of publication, Amit Singh had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com

2025-07-01 15:30:00

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