SoundHound AI: Confounding Growth Story
Update - Aug. 18, 2025 SoundHound AI has quickly rolled over as the market starts understanding the limited organic growth doesn't warrant a stock trading at 40x sales targets. The stock likely closes the gap down to $11.06 from Aug. 7. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our subscriber-only portfolios. Learn More » Original article posted on Aug. 13 SoundHound AI reported record Q2 revenues, but guidance for the second half of 2025 was weaker, raising concerns about sustainable growth. The company continues to report limited organic growth, with much of the recent revenue boost attributed to acquisitions rather than core business expansion. Despite a $6.5 billion valuation and claims of a large pipeline, actual progress in key verticals like restaurants and autos appears slow and unclear. I remain ultra bearish on SOUN due to its rich valuation and lack of a compelling, transparent growth story for long-term ...