Out Fox The $treet

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 ...

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.  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 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 )...

Update - Jan. 9, 2025 SoundHound AI still has plenty of downside. The stock valuation can't be justified above $4.  Original article posted on Nov. 13 SoundHound AI's reported growth is misleading; pro forma revenues actually declined 10% in Q3, revealing underlying business weaknesses. The Amelia acquisition contributed far more to revenue targets than originally suggested. Despite beating EPS estimates, SoundHound AI's adjusted EBITDA loss doubled, and the share count surged, inflating the market cap to nearly $3 billion. The stock's extreme valuation at 18x, 2025 sales targets is unjustified; it should revert to the $2-$4 range without clearer business performance. 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 » The original view on the Amelia deal was concerning, but  SoundHound AI  ( NASDAQ: SOUN ) rallied into earnings due to the strong reported growth rates. The...

  SoundHound AI reported 73% sales growth in Q1, boosted by an acquisition. The company doesn't provide enough clarity on the restaurant voice AI ordering opportunity, and the large cumulative backlog doesn't amount to large annual revenues. SOUN stock valuation is too high at 17x 2025 sales targets, making it an unattractive investment. 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 » SoundHound AI, Inc.   ( NASDAQ: SOUN ) is one of the more promising artificial intelligence ("AI") stocks, but the company doesn't aggressively push the voice AI opportunity and generally lacks scale to fend off competition. The stock constantly jumps to prices requiring far  faster AI growth and market control to warrant an investment. My  investment thesis  remains Neutral on the stock following the post earnings rally back above $5. Read the full article on Seeking Alpha....

Update - March 14, 2024 SoundHound AI continues to surge despite reporting a disappointing Q4'23 and guiding to disappointing numbers for 2024 and 2025 as follows:  2024 - $70M 2025 - $100M The stock has surged to a $3 billion market cap for no logical reason.  Original article posted Feb. 27  SoftBank and Nvidia have made small investments in SoundHound AI, bringing attention to the company and causing its stock to soar. The voice AI company is entering Q4 '23 earnings with high expectations, but needs to prove its ability to execute the business plan. SOUN stock has soared above $7, pushing the market cap to nearly $2 billion for a company with 2024 consensus sales targets of only $69 million. SoundHound AI, Inc.  ( NASDAQ: SOUN ) is one of the prime go to artificial intelligence ("AI") stocks to play the volatile AI boom. The company is more than just a company with "AI" in the name, but the voice AI stock probably  doesn't warrant the recent massiv...