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SoundHound AI: Murky Growth

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Update - July 23

SoundHound AI is making another run at breaking resistance around $12.50. The voice AI stock has no business rallying from here, but the market doesn't fully understand pro-forma sales metrics. 

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Original article posed on July 18

  • SoundHound AI, Inc.'s reported 150%+ growth is misleading, driven by acquisitions rather than true organic expansion, yet the stock trades at a premium valuation.
  • Revenue guidance and pro forma numbers reveal little to no organic growth, casting doubt on management's optimistic projections and market enthusiasm.
  • The stock trades at 30x 2025 sales targets of $167 million, which appear very aggressive.
  • Given the murky growth story and high valuation, I recommend selling SOUN, as the stock is priced for perfection without supporting fundamentals.

SoundHound AI, Inc. (NASDAQ:SOUN) remains one of the most misunderstood AI stocks. The voice AI business has no organic growth, yet the stock trades at a premium valuation. My investment thesis remains ultra Bearish on the investment story, though the market is likely to continue overpaying for SoundHound AI due to the misleading reported growth rates.

Read the full article on Seeking Alpha. 

Disclosure: No portion mentioned. Please review the disclaimer page for more details. 

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