SoundHound AI: Monster Move May Not Be Over Yet

seekingalpha11-20

SoundHound AI stock's recent breakout has justified my bullish thesis. The stock has significantly outperformed the S&P 500 since my last update.SoundHound AI's upgraded outlook clarifies its ability ...

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The stock has significantly outperformed the S&P 500 since my last update.SoundHound AI's upgraded outlook clarifies its ability ...</p>\n\n<a href=\"https://seekingalpha.com/article/4738736-soundhound-ai-monster-move-may-not-be-over-yet\">Source Link</a>\n\n</div>\n","source":"seekingalpha","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SoundHound AI: Monster Move May Not Be Over Yet</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\">\nSoundHound AI: Monster Move May Not Be Over Yet\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-20 02:18 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://seekingalpha.com/article/4738736-soundhound-ai-monster-move-may-not-be-over-yet><strong>seekingalpha</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>SoundHound AI stock's recent breakout has justified my bullish thesis. The stock has significantly outperformed the S&P 500 since my last update.SoundHound AI's upgraded outlook clarifies its ability ...</p>\n\n<a href=\"https://seekingalpha.com/article/4738736-soundhound-ai-monster-move-may-not-be-over-yet\">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":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://seekingalpha.com/article/4738736-soundhound-ai-monster-move-may-not-be-over-yet","article_id":"2484979381","we_media_id":null,"thumbnails":["https://static.seekingalpha.com/cdn/s3/uploads/getty_images/1846097131/image_1846097131.jpg"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484979381","pubTimestamp":1732040335,"sourceInfo":{"source_id":"seekingalpha","name":"Seeking Alpha"},"weMediaInfo":null,"summary":"SoundHound AI stock's recent breakout has justified my bullish thesis. The stock has significantly outperformed the S&P 500 since my last update.SoundHound AI's upgraded outlook clarifies its ability ","collect":0,"end_time":0,"defaultTopTitle":"seekingalpha.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","SOUN":"SoundHound AI Inc","BK4587":"ChatGPT概念","BK4547":"WSB热门概念"},"translate_title":"SoundHound AI：怪物行动可能还没有结束","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SOUN":0.9},"content_text":"SoundHound AI stock's recent breakout has justified my bullish thesis. The stock has significantly outperformed the S&P 500 since my last update.SoundHound AI's upgraded outlook clarifies its ability to reach profitability by the end of 2025.SOUN has expanded its enterprise Voice AI solutions, entering new industry growth verticals.Notwithstanding its post-earnings pullback, SOUN's robust momentum hasn't deterred dip buyers from returning.I argue why SOUN's monster move may be far from over. AI investors should consider loading up before the potential rally continuation.   J Studios SoundHound AI: Breakout Justified My Bullish Thesis SoundHound AI (NASDAQ:SOUN) investors who bought into the stock before its recent explosive breakout have been well rewarded. In my previous SOUN article, I reminded investors that the stock seems to be breaking out. While its unprofitability remains a critical near-term risk, the market appears confident in its ability to scale further and move toward achieving profitability.  As a result, SOUN has significantly outperformed the S&P 500 (SPX) (SPY) since my previous update. Accordingly, the stock has returned 27% since then, trumping the market's 5% uptick. Notwithstanding its recent pullback as the conversational AI company reported its Q3 performance, it hasn't sent SOUN spiraling toward its previous July 2024 lows.  In SoundHound AI's Q3 earnings release, the AI company surpassed Wall Street's expectations and upgraded its guidance. Moreover, management articulated its confidence in achieving adjusted EBITDA profitability exiting 2025. Hence, I assess that SoundHound AI has demonstrated its capabilities in sustaining its business model while navigating near-term execution challenges in monetizing AI effectively. There are several reasons to be optimistic about the broadening of AI agent prospects across SoundHound's customer profile, particularly in its enterprise base. Accordingly, Agentic AI has taken on a more prominent role as AI enterprise SaaS companies move on from customers experimenting with Generative AI to deploying them effectively into business processes. Hence, it has likely benefited SoundHound AI as it expanded its enterprise solutions, particularly in AI agent customer service opportunities. It has allowed the company to broaden its appeal to several industry verticals (including financial services, healthcare, telco, and retail), underscoring the increased penetration of conversational AI. Therefore, it has underpinned the company's thesis that its Voice AI solutions have become \"essential\" in the current tech landscape, likening them as \"necessary to all businesses as Wi-Fi and electricity.\"  SoundHound AI Is Scaling Toward Profitability   SoundHound AI estimates (TIKR)Therefore, it has likely bolstered the market's confidence in SoundHound's ability to continue scaling faster than its tech sector peers. The company's upgraded guidance aligns with the revised Wall Street estimates, suggesting analysts remain confident in its ability to scale.  Notwithstanding the constructive assessment, SoundHound sounded cautious in anticipating near-term margin dilution due to the integration of its Amelia acquisition. Management is reviewing underperforming businesses while seeking potential synergies in tech stack integration and cloud data center migration opportunities. Coupled with the improved cost rationalization due to anticipated improvement in AI inferencing costs, SoundHound AI is confident of recovering its margins, aligned with its adjusted EBITDA outlook, as indicated earlier.  SOUN Stock: Momentum Remains Robust   SOUN Quant Grades (Seeking Alpha)SOUN's robust \"A\" range momentum grades over the past six months underscore the market's confidence in its bullish proposition. While its unprofitable business model is concerning, the market doesn't seem to worry about its ability to scale toward profitability.  Software stocks represented in the iShares Expanded Tech-Software Sector ETF (IGV) have outperformed their tech sector peers (XLK) since June 2024. Hence, it has likely lifted SOUN's AI growth inflection thesis, corroborating the market's confidence in its AI agent opportunities. Therefore, it seems like the market has reallocated from the previous outperforming semiconductor stocks (SMH) (SOXX) toward software stocks. I assess that investors are likely increasingly confident about the AI monetization thesis, as demonstrated by SoundHound AI's capabilities and proprietary technology in Conversational AI. Furthermore, SOUN's \"C+\" valuation grade suggests it doesn't seem overvalued, notwithstanding its recent breakout surge.  Is SOUN Stock A Buy, Sell, Or Hold?   SOUN price chart (weekly, medium-term) (TradingView)SOUN's price action supports a bullish thesis, as indicated by its solid momentum grade. The stock has stayed above its 50-week moving average (blue line), bolstering its uptrend bias. It has also managed a series of constructive higher lows and higher highs price structures, lending credence to its breakout in early November 2024.  Despite that, the recent breakout has also pulled back as investors digested its recent outperformance. Notwithstanding management's optimism in upgrading its outlook, the market has likely reflected higher execution risks on its Amelia integration. Therefore, I assess that SoundHound AI must demonstrate its ability to continue scaling fast, strengthening its ability to accelerate its profitability push.  However, AI investors must exercise caution as AI monetization remains nascent. The challenges that Salesforce (CRM) encountered and the internal struggles that Microsoft (MSFT) faces suggest broad market adoption requires more customer conviction. Furthermore, it's uncertain whether SoundHound AI can maintain its proprietary edge in Voice AI given the rapid evolution of AI technologies.  Still, I assess that SoundHound's Polaris foundation model has demonstrated its competence in its production rollout. As a result, its customers have been increasingly adopting the model, potentially lowering costs while lifting more accurate responses. Given the data advantages embedded in its foundation model, SoundHound AI seems well primed to add to its advantages over its peers in Voice AI as it continues to scale across several industry verticals and its enterprise base. Rating: Maintain Buy. Important note: Investors are reminded to do their due diligence and not rely on the information provided as financial advice. Consider this article as supplementing your required research. Please always apply independent thinking. Note that the rating is not intended to time a specific entry/exit at the point of writing unless otherwise specified. I Want To Hear From You  Have constructive commentary to improve our thesis? Spotted a critical gap in our view? Saw something important that we didn’t? Agree or disagree? Comment below with the aim of helping everyone in the community to learn better!","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"analysis","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":1,"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":"4.29.2","shortVersion":"4.29.2","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/2484979381"}