SoundHound AI’s stock has experienced one of the wildest rides in the AI sector after skyrocketing in 2024 and then plummeting by 60% last year. The company’s shift from a meteoric rise to a sharp fall has left investors questioning its ability to recover.
Despite reporting record revenue of $34.5 million in Q4, SoundHound still posted an operational loss of $257.1 million. This stark contrast between rapid growth and ongoing losses has raised serious questions about the company’s ability to turn its technology into sustainable profits.
A key investor, Nvidia, recently divested its stake in SoundHound, triggering a 30% drop in the stock price. With only $136 million in cash, the company faces mounting pressure to demonstrate its ability to scale profitably before burning through its reserves.
SoundHound’s management is now at a critical juncture: can it transform its impressive technological growth into a profitable business model? The company must find a way to turn its growing partnership list into a self-sustaining revenue stream. Without a clear path to profitability, SoundHound risks becoming another AI company that cannot bridge the gap between innovation and long-term success.
Analysts are divided on whether SoundHound is a good buy. Based on five analyst ratings, the stock is considered a Moderate Buy with an average price target of $15.80, implying a 46.03% upside potential.
Source: https://www.tipranks.com/news/this-is-money-time-for-soundhound-soun-as-it-needs-to-turn-growth-into-profit