• 1
  • 1
  • Favorite

Stock Track | SoundHound AI (SOUN) Plummets 5.17% as Valuation Concerns Emerge

Stock Track2024-12-23

SoundHound AI Inc. (SOUN) plummeted 5.17% on Monday amid concerns over its lofty valuation and lack of profitability despite rapid revenue growth.

The voice AI technology company has seen its stock soar over 900% in the past year, driven by strong demand for its AI-enabled speech recognition services. However, some analysts warn that SoundHound AI's current market capitalization of $8.05 billion is trading at nosebleed valuations, nearly 50 times its projected 2025 revenue.

While SoundHound AI is expected to continue posting impressive revenue growth of 79%-85% in 2024 and 86%-110% in 2025, the company remains unprofitable and has been increasing its outstanding shares through secondary offerings and stock-based compensation. This has raised concerns that the stock could face a significant correction if SoundHound AI fails to meet its own lofty expectations.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment1

  • Des79
    ·2024-12-24
    I don't how other people think. As long the company continue to take contract, coming out better AI technology to help the industrial. The revenue will grow 🪴 eventually. Ai Sound is already proven product. 
    Reply
    Report
 
 
 
 

Most Discussed

 
 
 
 
 

7x24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email:uservice@ttm.financial