SoundHound AI, Inc Class A ( (SOUN) ) has fallen by -15.54%. Read on to learn why.
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SoundHound AI, Inc Class A has experienced a notable decline in its stock price, dropping by 15.54% over the past week. This downturn comes despite the company’s strong Q3 earnings report, which saw revenue growth and smaller-than-expected losses. However, concerns over high valuation and broader market uncertainties, particularly regarding potential Federal Reserve rate cuts and economic recovery post-government shutdown, have overshadowed these positive results.
Despite the recent sell-off, SoundHound AI’s long-term prospects remain optimistic. The company is poised to benefit from the increasing demand for voice-enabled technologies, with analysts maintaining a Moderate Buy rating. This suggests a potential upside for patient investors, as the company continues to expand its customer base and improve its revenue outlook, raising its full-year forecast to $165–$180 million.
Analysts like H.C. Wainwright’s Scott Buck remain bullish on SoundHound AI, citing its path to profitability and expanding margins as key factors. Buck’s price target implies a significant upside, highlighting the company’s potential to scale operations and boost revenue as more industries adopt its voice AI technology. This positions SoundHound AI as a promising investment for those looking beyond the current market volatility.