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SoundHound AI: Confounding Growth Story

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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. 

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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 investors.

As usual, SoundHound AI, Inc. (SOUN) reported a quarter where the real growth metrics of the voice AI business were difficult to parse. The company reported record quarterly revenues, but the guidance for the 2H was weaker. My investment thesis remains ultra Bearish on the stock due to the limited organic growth and the rich valuation.

Read the full article on Seeking Alpha. 

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

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