SoundHound AI Inc, trading under the ticker SOUN, is a company that specializes in AI and voice-enabled technologies. In this blog, we will look into SoundHound’s (SOUN) stock forecast & price predictions, and explore the factors that could influence its future.
First, we will examine its historical data and current performance, then we will see how the company will perform in long-term and short-term on the basis of that. Here, we aim to provide investors with comprehensive understanding of the company and risks associated with investing in SOUN stock.
About SoundHound Inc (SOUN)
SoundHound AI Inc is a conversational artificial intelligence and voice-enabled technology company. Founded in 2005 and headquartered in Santa Clara, California, the company has been at the heart of developing advanced speech recognition, natural language understanding, and machine learning solutions.
At its core, SoundHound specializes in creating intelligent voice AI assistants that can engage in natural language conversations, understand context and intent, and provide accurate and relevant responses. The company’s proprietary Speech-to-Meaning and Deep Meaning Understanding technologies enable its voice AI systems to comprehend complex queries and deliver human-like interactions across a wide range of applications and devices.
One of SoundHound’s flagship products is the SoundHound app, a voice-enabled virtual assistant that can recognize songs, provide music information, and handle various voice commands. The app has gained widespread popularity, with over 350 million installations worldwide, and has been consistently ranked as one of the best music recognition apps available.
It has also made significant strides in the field of conversational intelligence for the automotive industry. Its Houndify Voice AI platform has been adopted by several major automakers, allowing drivers to control various in-vehicle systems and access a wide range of services using natural language voice commands.
| Company Name | SoundHound AI Inc |
| Industry | Software – Application |
| Sector | Technology |
| CEO | Keyvan Mohajer |
| Number of Employees | 260 |
| Official Website | SoundHound AI |
| Exchange Traded On | NASDAQ |
| Competitors | Google Cloud Speech-to-Text, Krisp, Kubient, DatChat |
SoundHound Inc (SOUN) Historical Performance
SoundHound AI Inc went public through a SPAC (Special Purpose Acquisition Company) merger with Archimedes Tech SPAC Partners Co. in April 2022, trading on the Nasdaq under the ticker symbol SOUN.
Prior to its listing, SoundHound AI Inc raised over $200 million in private funding from investors, including Nvidia, Samsung, and Global Founders Capital. The company’s pre-IPO valuation was estimated at around $2.1 billion.
On its debut trading day, SOUN opened at $8.57 per share, slightly below its SPAC offering price of $10. However, the stock price quickly surged, reaching an intraday high of $18.16 as investors sought exposure to the promising voice AI technology company.
In the subsequent months, SOUN’s stock price experienced significant fluctuations. The stock hit an all-time low of $3.65 in August 2022, despite optimism about SoundHound’s expanding footprint in the automotive industry and its collaborations with major automakers. Furthermore, SOUN’s stock price steadily declined, reaching a low of $0.90 in December 2022 amid broader market volatility and investors’ risk-off approach. Also, the company laid off about 10% of its workforce during this period amid ongoing economic turmoil around the world.
In 2023, SoundHound AI Inc’s stock price remained in the range of $1.99 to $3 per share. During this period, the company announced its strategic partnerships with consumer electronics giants and unveiled its advanced conversational AI platform, Houndify 5.0. The However, in 2024, the stock saw a more than 200% increase, taking the stock price to $8.6.
Here’s the stock price history for SOUN to give you a clear picture as how the stock has performed over the years.
| Period | Stock Price |
|---|---|
| May 2022 – Aug 2022 | $12.2 – $2.68 |
| Sep 2022 – Feb 2023 | $2.85 – $4.97 |
| Mar 2023-Aug 2023 | $1.57 – $5.11 |
| Sep 2023-Feb 2024 | $1.49 – $7.91 |
SoundHound Inc (SOUN) Financial Details
In its most recent fiscal year (2023), SoundHound AI Inc reported revenue of $45.8 million, representing a remarkable 47% year-over-year increase from $31.1 million in 2022. Comparing this to 2021, SoundHound’s revenue stood at a modest $21.2 million, showing the company’s impressive growth trajectory due to rising adoption of voice-enabled technologies.
Market Capitalization: As of March 2024, SoundHound AI Inc’s market capitalization stands at $1.8 billion, which tells about the company’s future prospects in the rapidly evolving AI sector. However, this market cap is significantly lower than the company’s pre-IPO valuation of $2.1 billion, which indicates the challenges the company faced by growth-stage companies in sustaining high valuations in volatile market conditions.
Profitability and Losses: Despite the substantial revenue growth, SoundHound AI Inc has yet to achieve profitability. In the fiscal year 2023, the company reported a net loss of $88 million, a slight improvement from the $115.2 million loss in 2022.
Other Metrics: SoundHound AI Inc’s gross profit margin has improved over the years, standing at 73.45% in 2023, up from 60.3% in 2022. Also, The company’s cash and cash equivalents position remained strong at $95.6 million as of the end of 2023, providing a runway for continued investment in research and development, as well as potential strategic acquisitions or partnerships.
Here are some other financial metrics of SOUN that you look into to get the idea about company’s performance in the market.
| Metric | Value |
|---|---|
| 52 Week High | $8.65 |
| Market Cap | $2,142.17 million |
| Revenue (Last 12 Months) | $45.87 million |
| Gross Profit (Last 12 Months) | $21.53 million |
| EBITDA | -$61.74 million |
| Earnings Per Share (EPS) | -$0.4 |
| Operating Margin | -67.57% |
| Profit Margin | -188.9% |
| EV/EBITDA Ratio | -34.7728 |
| Enterprise-Value-to-Revenue Multiple | 46.84 |
| Price-to-Book Ratio (P/B) | 153.04 |
| Price-to-Sales Ratio (P/S) | 46.7 |
| Beta | 3.62 |
SoundHound Inc (SOUN) Stock Forecast & Price Prediction
If you look at the historical data and current stock analysis, the SOUN stock has underperformed in the last 3 years. The company’s stock has gone from $12.2 in 2021 to $3.65 in 2022 to $2.02 in early 2023. We just saw a major increase in the stock price ($8.5) in early 2024.
So, On the basis of it, If you look at short-term forecast, the SOUN stock can fall to $7 in 2024, and rise to $10 in 2025. And, If you look at long-term projections, the stock can rise to $21 in 2028 and over $30 in 2030. Let’s take a look at SOUN’s stock price predictions in detail.
| Year | Max Price | Min Price | Avg Price | Change % |
|---|---|---|---|---|
| 2024 | $10.52 | $5.04 | $7.76 | -8.71% |
| 2025 | $14.03 | $7.01 | $10.52 | +23.76% |
| 2026 | $18.05 | $9.03 | $13.54 | +59.29% |
| 2027 | $22.07 | $12.02 | $17.05 | +100.59% |
| 2028 | $27.08 | $15.06 | $21.07 | +147.88% |
| 2029 | $32.10 | $18.07 | $25.09 | +195.18% |
| 2030 | $38.12 | $22.05 | $30.09 | +254.00% |
| 2040 | $100.50 | $50.25 | $75.38 | +787.41% |
| 2050 | $150.75 | $80.38 | $115.57 | +1,259.65% |
SOUN Stock Forecast & Price Prediction 2024
In 2024, SoundHound’s stock is projected to have a maximum price of $10.52, a minimum of $5.04, and an average of $7.76. This represents a potential decline of 8.71% from the current price of $8.50. As the competition from larger tech companies is going to increase in this domain, the challenges are going to be high for the speech recognition company. But, If the company makes any new collaborations or product launches, It can see a upside potential in the future.
SOUN Stock Forecast & Price Prediction 2025
For 2025, the forecast is more optimistic, with a maximum price of $14.03, a minimum of $7.01, and an average of $10.52, indicating a potential upside of 23.76%. Now, what we believe that there could be a wider adoption of voice AI technology in consumer electronics and automotive sectors. Also, If the company succeed in expanding its customer base and revenue streams, we can see this upside in 2025.
SOUN) Stock Forecast & Price Prediction 2028
In 2028, the stock could reach a maximum of $27.08, a minimum of $15.06, and an average of $21.07, representing a potential increase of 147.88% from the current price. By this time, we expect that SoundHound may have established a stronger foothold in emerging markets and explored new applications for its conversational AI technology.
SOUN Stock Forecast & Price Prediction 2030
The mid-term forecast for 2030 is quite bullish, with a maximum price of $38.12, a minimum of $22.05, and an average of $30.09, translating to a potential upside of 254%. Since the launch of many AI technologies in the market, the consumers have shifted to these in quite less time. Similarly, The voice AI market is expected to experience significant growth by this time, and SoundHound’s ability to maintain its technological edge and capitalize on emerging trends could fuel its stock performance.
SOUN Stock Forecast & Price Prediction 2040
Looking ahead to 2040, the long-term projections are highly speculative. However, if everything goes well for SOUN, we believe a maximum price of $100.50, a minimum of $50.25, and an average of $75.38 could be seen, representing a potential upside of 787.41%. By this time, we expect disruptive innovations in AI and voice technology could reshape the industry landscape, and SoundHound’s ability to adapt and maintain its competitive edge will be crucial.
SOUN Stock Forecast & Price Prediction 2050
Similarly, The projections for 2050 are even more speculative, with a maximum price of $150.75, a minimum of $80.38, and an average of $115.57, indicating a potential upside of 1,259.65%. At this point, If the the AI industry could undergoes transformative changes, and If SoundHound is able to navigate these challenges with their strategies, then we can definitely see this long-term forecast.
Is SOUN Stock Buy, Sell or Hold?
The average analyst rating of 4.5/5 and the four strong buy ratings indicate that analysts are generally bullish on SOUN stock. However, the analyst price target of $5.04, significantly lower than the current stock price, suggests that analysts believe the stock is overvalued at its current levels.
Additionally, the high percentage of institutional ownership (21.66%) is a positive sign, indicating that professional investors see long-term potential in the company.
However, the low insider ownership (1.836%) could be a concern, as it might signal a lack of confidence from management and insiders. Also, the high monthly volatility of 77.8% and the maximum drawdown of 91.04% highlight the stock’s extreme volatility, making it a high-risk investment. This level of volatility is not suitable for risk-averse investors.
| Metric | Value |
|---|---|
| Average Analyst Rating | 4.5/5 |
| Analyst Price Target | $5.04 |
| Number of Buy Ratings | 1 |
| Number of Strong Buy Ratings | 4 |
| Number of Hold Ratings | 1 |
| Percent Owned by Insiders | 1.836% |
| Percent Owned by Institutions | 21.66% |
| Max Drawdown | 91.04% |
| Monthly Volatility | 77.8% |
Frequently Asked Questions
What is the future outlook for SoundHound AI Inc (SOUN) stock?
The future outlook for SOUN stock is promising, with the voice AI and conversational intelligence market expected to witness substantial growth in the coming years. Also, Long-term forecasts suggest that SOUN could potentially reach $150.75 by 2050, but these projections are highly speculative and subject to numerous uncertainties.
Is SoundHound AI Inc (SOUN) stock a good buy for 2024?
Based on the forecasts for 2024, SOUN stock could potentially decline by 8.71%, with a maximum price of $10.52 and a minimum of $5.04. However, new partnerships or product launches could provide upside potential. Investors should carefully evaluate the company’s financials, competitive landscape, and growth prospects before making an investment decision for 2024.
What are the key risks associated with investing in SoundHound AI Inc (SOUN) stock?
Some of the key risks associated with investing in SOUN stock include profitability challenges, intense competition from tech giants like Amazon and Google, and extreme volatility.
What factors could drive SoundHound AI Inc (SOUN) stock price higher in the long term?
Factors that could drive SOUN stock price higher in the long term include wider adoption of voice AI technology across various industries, strategic acquisitions or partnerships with major brands such as those they have established with, and disruptive innovations in AI and voice technology sector.
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Disclaimer: The projections and price targets provided for SOUN” are solely for informational and educational purposes and should not be treated as investment or financial advice. Always conduct your own research or consider consulting with a financial advisor before making any investment decisions.
