Nice going. I'm not that familiar with the company, other than seeing them on the best performing lists, etc. They seem to be well positioned, and have a connection to NVDA, and lots of momentum in recent months. So a 'hot potato', and looks like a large short position close to 25% (per YH Finance).
Chart-wise it looks like it could have another blast higher, getting through the previous March high ~10, and maybe up into the low-mid teens, but just a guess. Then maybe a run at the all time high up around 18-19 from 2022 (?) But plenty of volatility on the way, and it first has to get through the key resistance at 10. And a lot may depend on the broader market, and whether fear starts to dominate over greed, etc.
Fwiw, I always like to book profits. My dad would say that 'no one ever went broke by taking a profit', and it seems sensible to at least book some of the profits, and let some ride. Over the years I had some quick doubles on several high flying stocks, and then sold half and let the remaining 'free shares' ride. That worked out great with SMCI and several others. Everyone is different, but imo watching nice profits evaporate is worse than missing out on additional gains.
That said, the current chart setup is a quasi Cup + Handle, and if it can break through the March high (~10), that could be the signal for traders to pile in for more. So everyone will be watching the ~10 resistance area closely.
The company is successfully tapping into conversational AI.
SoundHound AI's losses are narrowing.
The stock is relatively expensive right now.
The rapidly expanding artificial intelligence (AI) market is fueling growth among many tech companies, and SoundHound AI's (SOUN) strong position in voice-enabled products and services is benefiting from the trend.
SoundHound's stock has soared more than 250% over the past 12 months (as of this writing), leaving some investors wondering where the company will be one year from now. So, let's take a closer look at what's happening with SoundHound and what investors might expect from the company in the coming year.
How SoundHound is doing right now
SoundHound has successfully expanded its business lately, moving into new conversational AI markets and boasting more than 200 enterprise brands using its tech, including Chipotle Mexican Grill, Qualcomm, and Stellantis' automotive brands.
The popularity of its voice AI platform is evident from the company's third quarter (which ended Sept. 30) results, in which revenue rose 89% from the year-ago quarter to $25.1 million, outpacing analysts' consensus estimate of $23 million. SoundHound's non-GAAP loss per share of $0.04 was an improvement from a loss of $0.06 in the year-ago quarter and ahead of Wall Street's expectation of a loss of $0.08.
Not only were the company's third-quarter results solid, but SoundHound's revenue growth is likely to continue. Management recently issued 2024 revenue guidance of $83.5 million for the full 2024 year at the midpoint and then increased to $165 million in 2025. That represents substantial year-over-year sales growth for the company and outpaces analysts' consensus estimate of $152.1 million in revenue for 2025.
SoundHound's opportunity and one word of caution
SoundHound is already successfully tapping into the AI market, and its momentum comes as large companies ramp up their AI spending. According to SoundHound's management, companies will invest an estimated $175 billion to $250 billion in AI enterprise spending by 2027.
This could provide SoundHound with new growth opportunities over the coming year and beyond. The company just closed on its acquisition of Amelia, giving it more avenues for conversational AI growth in finance, healthcare, and insurance that haven't been tapped fully into.
But there are two things investors should be cautious about with SoundHound right now. The first is that the company isn't profitable. The company's losses narrowed in the third quarter, and analysts estimate the company's loss per share will continue to improve from $0.38 in 2024 to $0.27 in 2025. That's good news, but it'll take time for the company to reach profitability.
More importantly, SoundHound's stock is relatively expensive right now. The company's shares trade at a price-to-sales ratio of 35.9, which is far above the S&P 500's average of about 3.1.
That doesn't mean SoundHound's stock doesn't have more room to run, but some of the company's future benefits from an expanding AI market are likely baked into its current share price. So, if you're bullish on the company's long-term opportunity, adding a small position now and buying more shares if there's a pullback in the stock price might be a good strategy.
Derf, Looks like PLTR is still climbing. That's one phenomenal chart right now. Just when it looks ready for a pullback, it has another zoom. You already cleaned up on it though, so nice going. I had a little and did OK, but it's doubled since I sold it several months ago. Also, nice bounce for LRCX. It's through the 50 MA, and if it can get through 80, then next target is 85 (Sept / Oct highs) and the 200 MA (88). Still early though, but at least 69-70 was hopefully the bottom. Chart-wise, you got in earlier than I would have, but so far so good.
Portions of the market are showing some speculative froth, and the Nasdaq has inched back to new highs, so what can go wrong? Plenty, but for now people are enjoying the recovery. I worry about the tariffs and their effect on the Fed's plans, but it seems the market is not overly concerned, at least not yet.
I'll be curious to see Nick Timiraos' next update on what to expect from the upcoming Dec Fed meeting (link below). He is the unofficial Fed 'mouthpiece' at the WSJ, so well worth checking out. The headline of his articles is usually enought to get the gist and intended 'guidance'. Just about everyone on Wall St knows that Timiraos is the Fed's designated 'leaker', with the goal of preventing policy decision surprises that might overly disrupt the markets -
Derf, SOUN blasts through 10 on huge volume, so now the question is how high does she go in this move? Tough to say, but lots of momentum, so the obvious near term target would be the 2022 high around 18-19 range. Here's the latest news -
>>> SoundHound, A Top 1% Stock, Just Catapulted After Inking A 'Damn Good' Deal
SoundHound stock's rally continued Thursday as the shares soared again as the voice AI company announced a deal with Torchy's Tacos — the maker of "damn good tacos" — to use its voice AI technology at all 130 of the restaurant's locations.
Santa Clara, Calif.-based SoundHound AI (SOUN) went public in 2022. The company provides AI voice tech to devices, business kiosks and call centers. It's also gaining traction in the restaurant industry, where SoundHound has also signed deals with Chipotle, Jersey Mike's, White Castle, Panda Express and Church's Texas Chicken.
Now, Torchy's Tacos is signing onto the trend. Torchy's describes itself as a "cult-favorite taco chain." It makes items like the "trailer park taco" and the "green chile queso."
"At Torchy's Tacos, we want our guests to have the best experience every time they engage with the brand," Thai Tran said in a written statement. Tran is Torchy's chief technology officer. "Partnering with SoundHound and using their Smart Ordering system, we are able to give guests another way to easily order our food."
SoundHound, which had been a sleepy stock, suddenly was in the Wall Street spotlight after AI giant Nvidia (NVDA) disclosed that its has taken an investment stake in the company.
"We think every product is going to benefit from voice AI," SoundHound Chief Executive Keyvan Mohajer told Investor's Business Daily in a recent interview. "And then every service also is going to benefit from an AI agent. Those are the two pillars of our business."
In afternoon trades, SoundHound stock surged more than 30% to 13.20. That put shares within striking distance of their intraday record high at 18.14, achieved in May 2022. SoundHound shares are also well above their 50-day and 200-day moving averages, MarketSurge chart analysis shows.
Shares have a perfect IBD Digital Relative Strength Rating of 99. This means SoundHound stock ranks in the leading 1% of all stocks when it comes to 12-month performance.
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