SoundHound AI, Inc. (SOUN) Stock Dips While Market Gains: Key Facts

SoundHound AI, Inc. (SOUN) ended the recent trading session at $6.68, demonstrating a -2.77% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a gain of 0.72% for the day. Elsewhere, the Dow gained 0.48%, while the tech-heavy Nasdaq added 1.16%.

Heading into today, shares of the company had lost 19.27% over the past month, lagging the Computer and Technology sector's loss of 5.35% and the S&P 500's loss of 4.99%.

Investors will be eagerly watching for the performance of SoundHound AI, Inc. in its upcoming earnings disclosure. In that report, analysts expect SoundHound AI, Inc. to post earnings of -$0.05 per share. This would mark year-over-year growth of 16.67%. Simultaneously, our latest consensus estimate expects the revenue to be $42.71 million, showing a 46.61% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.09 per share and revenue of $232.73 million, indicating changes of +30.77% and +37.77%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for SoundHound AI, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 2.44% decrease. Currently, SoundHound AI, Inc. is carrying 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 86, positioning it in the top 36% 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.

To follow SOUN in the coming trading sessions, be sure to utilize Zacks.com.

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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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