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SoundHound AI: The Next Big Thing in Voice AI Stocks

Eli GrantSunday, Nov 24, 2024 9:23 am ET
1min read
Artificial intelligence (AI) has been a buzzword in the tech industry, with voice AI being one of its most promising subsets. One company that has caught the eye of investors is SoundHound AI (SOUN), and all signs point to a soaring stock in 2025. Let's delve into the reasons behind this optimism.

SoundHound AI specializes in integrating AI with audio recognition, a field that has seen rapid advancements in recent years. The company has already made significant inroads in industries like restaurant order automation and automobile chatbots. Its innovative technology has led to a quarterly revenue growth of 89% and a projected full-year 2024 revenue of $82-$85 million, up more than 75% from the previous year.

The company's growth is expected to continue into 2025, with management guiding for revenue between $155 million and $175 million. This impressive growth is driven by SoundHound's acquisition of Amelia, an enterprise voice AI company, and its expansion into new industries. The acquisition has expanded SoundHound's customer base and diversified its revenue streams, with the potential revenue pipeline growing to $723 million.

Despite being unprofitable, SoundHound AI trades at a price-to-sales (P/S) ratio of 29, which is comparable to other high-growth AI stocks like Palantir (55x P/S). While this valuation may be a concern for some investors, the company's impressive growth and potential make it an attractive investment.

Looking ahead, investors should monitor SoundHound AI's growth and customer base expansion. If the company continues to meet its financial targets and achieves EBITDA profitability by the end of 2025, as management expects, investors could see substantial gains. However, it is essential to keep in mind the potential risks and to manage position sizing accordingly.



In conclusion, SoundHound AI's innovative voice recognition technology, strong revenue growth, and bullish guidance make it an attractive investment opportunity for 2025. While there are risks to consider, such as its high P/S ratio and unprofitability, the company's potential in the growing voice AI market is undeniable. As investors continue to monitor the company's progress, SoundHound AI's stock is poised to soar in the coming year.
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ExeusV
11/24
SOUN's pivot to enterprise AI is smart. Diversifying revenue streams is king. Keep an eye on customer retention.
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Assistantothe
11/24
SOUN's AI sounds 🔥 in the market right now. With that P/S ratio, some might yawn, but the growth potential feels solid. They're not just talking, they're making moves with Amelia. Worth a dip or stay out? 🤔
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iyankov96
11/24
SoundHound's P/S ratio looks spicy, peeps
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Such-Ice1325
11/24
Voice AI = future, SoundHound cashing in?
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bottlethecat
11/24
AI in cars is a goldmine. Imagine $SOUN voice assistants in every auto? 🚗🔥
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lem_lel
11/24
Amelia acquisition = 🔥 growth play?
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HairyBallsOfTheGods
11/24
Holding SOUN for long, high growth vibes
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User avatar and name identifying the post author
11/26
@HairyBallsOfTheGods

Holding 1,000 waiting until 2025.  Its going to

take off!

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Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
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