Is SoundHound AI Stock a Bargain After the 50% Crash? The Pros and Cons

InvestorPlace04-23

SoundHound AI (SOUN) stock may be de-risked after the share-price drawdown.On the other hand, SoundHound AI could still be over-valued.Investors should think about their risk tolerance and be careful ...

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The Pros and Cons</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs SoundHound AI Stock a Bargain After the 50% Crash? The Pros and Cons\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-04-23 23:20 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/market360/2024/04/is-soundhound-ai-stock-a-bargain-after-the-50-crash-the-pros-and-cons/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SoundHound AI (SOUN) stock may be de-risked after the share-price drawdown.On the other hand, SoundHound AI could still be over-valued.Investors should think about their risk tolerance and be careful ...</p>\n\n<a href=\"https://investorplace.com/market360/2024/04/is-soundhound-ai-stock-a-bargain-after-the-50-crash-the-pros-and-cons/\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"PRO","symbol_name":"Pros Holdings Inc","start_time":0,"source_url":"https://investorplace.com/market360/2024/04/is-soundhound-ai-stock-a-bargain-after-the-50-crash-the-pros-and-cons/","article_id":"2429936940","we_media_id":null,"thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2429936940","pubTimestamp":1713885600,"sourceInfo":{"source_id":"investorplace_stock_picks","name":"InvestorPlace stock picks"},"weMediaInfo":null,"summary":"SoundHound AI is an intriguing company that's immersed in a niche AI-tech market, but don't overload your portfolio with SoundHound AI stock.","collect":0,"end_time":0,"defaultTopTitle":"investorplace.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"PRO":"Pros Holdings Inc","SOUN":"SoundHound AI Inc","BK4023":"应用软件","BK4587":"ChatGPT概念"},"translate_title":"50%崩盘后SoundHound AI股票便宜吗？利弊","themeId":"","isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"PRO":1,"SOUN":1},"content_text":"SoundHound AI (SOUN) stock may be de-risked after the share-price drawdown.On the other hand, SoundHound AI could still be over-valued.Investors should think about their risk tolerance and be careful with their SoundHound AI stock position size.Source: rafapress / Shutterstock.comSoundHound AI shares jumped 14.2% in morning trading Tuesday.SoundHound AI (NASDAQ:SOUN) doesn’t make AI chips like some other companies do. It develops “voice AI solutions that let businesses offer incredible conversational experiences to their customers.” This may intrigue you, and we’re giving SoundHound AI stock a “B” grade but be aware of the risks as well as the potential rewards.SoundHound AI CEO Keyvan Mohajer sees a “$100 billion opportunity” for the company’s products. These products can enable voice-AI functionality in “millions of devices,” from televisions to automobiles. That’s exciting, but as an investor, you must always temper your optimism with a healthy dose of realism.Is SOUN Stock De-Risked After 50% Price Crash?There’s an old saying: chasers get punished. We can find a textbook example here, as investors who bought SoundHound AI at $9.35 in March are now deep underwater.The SoundHound AI share price has been cut in half, and that’s painful for people who bought at the peak. Cantor Fitzgerald analyst Brett Knoblauch seems to see a more favorable opportunity now, however.After the share-price crash, Knoblauch upgraded SoundHound AI stock from “underweight ” to “neutral.” Furthermore, the Cantor Fitzgerald analyst reiterated his price target of $4.90 for SoundHound AI shares.Perhaps there’s better reward-to-risk balance, now that SoundHound AI shares have fallen into “penny stock” territory (i.e., below $5). After all, the bullish argument for SoundHound AI remains intact.The AI trend isn’t going away anytime soon. New use cases for AI voice software are still being discovered, including voice AI for fast-food drive-thru orders.SoundHound AI: Monitor Your InvestmentEven though SoundHound AI stock is much cheaper than it was a month ago, it’s not a 100% “safe” investment. You’ll want to keep any position size small and monitor it carefully. If SoundHound AI’s upcoming announcements indicate problems, be ready to adjust your strategy.From a financial perspective, it’s a “good news, bad news” type of situation. In 2023’s fourth quarter, SoundHound AI’s revenue increased 80% year over year to $17.1 million. However, the company remained unprofitable, with a net earnings loss of 7 cents per share.With that in mind, we can circle back to Knoblauch’s valuation concerns. Even after the share-price collapse, SoundHound AI’s trailing 12-month price-to-sales ratio is quite quite elevated at around 22x. For comparison, the sector median P/S ratio is 2.9x.Knoblauch suggested that the downside risk and upside potential for SoundHound AI stock are now equal. That’s an interesting proposition, but if the risk-reward balance is really akin to a coin flip, then investors certainly shouldn’t go all in on SoundHound AI.SoundHound AI Stock: Hear Both Sides of the ArgumentNot every stock that’s down is necessarily a prime bargain. Still, SoundHound AI shares look enticing now that they’re significantly cheaper. This is especially true if you envision a broad variety of use cases for SoundHound AI’s voice-AI technology.Therefore, risk-tolerant investors may choose to take a small and carefully monitored share position in SoundHound AI. When all is said and done, we’re assigning SoundHound AI stock a “B” grade and we’ll continue to keep tabs on this fascinating company.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":7,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.22.4","shortVersion":"4.22.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2429936940"}