SoundHound AI, Inc. (SOUN) Registers a Bigger Fall Than the Market: Important Facts to Note

In the latest close session, SoundHound AI, Inc. (SOUN) was down 6.48% at $6.06. The stock's performance was behind the S&P 500's daily loss of 1.74%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 2.38%.

Prior to today's trading, shares of the company had lost 23.94% lagged the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 4.99%.

The investment community will be paying close attention to the earnings performance of SoundHound AI, Inc. in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 16.67% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $42.71 million, up 46.61% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of -$0.09 per share and a revenue of $232.73 million, signifying shifts of +30.77% and +37.77%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for SoundHound AI, Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 7.69% lower. As of now, SoundHound AI, Inc. holds a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 79, positioning it in the top 33% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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