Shares of SoundHound AI (SOUN, Financial) fell sharply today, with the stock price decreasing by 19.05%. Despite the company's solid earnings performance in the third quarter, the stock faced downward pressure due to shifting investor expectations.
SoundHound AI reported a remarkable 89% year-over-year increase in sales, amounting to $25.1 million. This performance exceeded Wall Street's expectations, which anticipated a $23 million revenue. The company's adjusted net loss also improved, narrowing from $0.09 to $0.04 per share, surpassing the forecasted loss of $0.07.
A significant development for SoundHound AI (SOUN, Financial) was its acquisition of Amelia, which contributed to a substantial backlog of order bookings and subscriptions, now exceeding $1 billion. This represents more than a doubling from the previously reported $342 million, excluding Amelia's impact, with contract durations averaging six years.
Looking into the stock's analysis, SoundHound AI holds a market capitalization of $2.19 billion and operates in the Software - Application subindustry within the Technology sector. Despite recent price volatility, which saw a 52-week high of $10.25, the stock currently trades at $6.12. The company demonstrates strong financial strength with an Altman Z-Score of 35.72, yet faces warning signs such as insider selling activities and a concerning Beneish M-Score.
SoundHound AI's valuation metrics highlight its speculative growth classification, with a price-to-book (P/B) ratio of 9.56 and an enterprise value to revenue (EV/Rev) ratio of 45.49. The company's GF Value is not currently available, restricting a precise valuation comparison with its intrinsic value.
For more information on SoundHound AI's valuation, you can explore the GF Value page. Investors should consider both the promising growth evidenced by recent financial results and the associated risks indicated by market sentiment and fundamental analysis.
