SoundHound AI Inc (SOUN) Stock Analysis
Verdict: AVOID
Rapid enterprise voice AI revenue growth is overshadowed by heavy cash burn, acquisition integration risks, and constant insider selling near 52-week lows.
Investment score: 35/100
Analysis as of
Is SoundHound AI Inc stock worth reviewing? AI model thesis
SoundHound AI offers high revenue growth (+54.58%) in enterprise voice AI, but severe operating losses (TTM operating margin -89.7%), cash burn, and dilutive M&A create unfavorable risk-reward at current price levels.
7-factor investment score
- Valuation: 30/100 (weight 20%)
- Financial Health: 40/100 (weight 15%)
- Technical Momentum: 20/100 (weight 15%)
- Earnings Quality: 45/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 30/100 (weight 15%)
SoundHound AI Inc opportunities and risks
What speaks for SOUN
- LivePerson and OASYS Platform Expansion
What speaks against SOUN
- Persistent Cash Burn and Shareholder Dilution
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| SOUN | n/a | 11.7x | n/a | 37.4% | -67.5% | -4.9% |
| AGYS | 66.8x | 8.7x | 43.1x | 62.3% | 13.0% | 2.8% |
| ALRM | 23.3x | 2.6x | 12.9x | 63.4% | 11.1% | 8.6% |
| CLSK | n/a | 4.0x | n/a | -5.3% | -146.9% | -42.6% |
| FIVN | 45.6x | 2.2x | 17.4x | 54.7% | 4.9% | 7.5% |
| VIA | n/a | 4.8x | n/a | 39.6% | -20.0% | -2.0% |
| Peer median | 23.3x | 4.0x | 12.9x | 54.7% | 4.9% | 2.8% |
Frequently asked questions about SoundHound AI Inc (SOUN)
Is SOUN stock a good investment?
The cached TradeMates AI model rates SoundHound AI Inc as AVOID with an investment score of 35/100. SoundHound AI offers high revenue growth (+54.58%) in enterprise voice AI, but severe operating losses (TTM operating margin -89.7%), cash burn, and dilutive M&A create unfavorable risk-reward at current price levels. This is algorithmic model output, not personal investment advice.
Is SOUN stock a buy?
The TradeMates model verdict for SOUN is AVOID with an investment score of 35/100. Treat this as a model signal to review, not a personal buy recommendation.