Shares of SoundHound AI Inc (NASDAQ:SOUN) traded slightly lower on Thursday, following a surge that saw the stock gain approximately 30% during the second quarter. This impressive run comes amid a 10% increase over the trailing week, signaling strong investor interest in the voice AI innovator.
What To Know: Potentially fueling this optimism is a number of bullish analyst ratings. Piper Sandler recently initiated coverage with a $12 price target, while Wedbush and HC Wainwright reiterated their positive outlooks, setting targets of $15 and $18, respectively.
This confidence stems from the company’s robust performance, including a remarkable 151% year-over-year revenue increase in the first quarter. Looking ahead, SoundHound has forecast full-year revenue to come in between $157 million and $177 million.
The broader adoption of artificial intelligence in the restaurant industry is a significant tailwind for the company. As major chains like McDonald's, Dine Brands and Yum Brands increasingly integrate AI for operational efficiency and customer service, SoundHound’s conversational AI technology is viewed as a key enabler for 2025.
Investors are now eagerly awaiting the company’s second-quarter results, which are anticipated in early August. Current analyst forecasts project quarterly revenue of $32.88 million.
Benzinga Edge Rankings: Based on the latest Benzinga Edge stock rankings, SoundHound presents a mixed profile based on the available metrics. The stock demonstrates exceptional strength in one key area, scoring a 94.49 for Momentum, suggesting strong recent performance and investor interest.
However, it receives a very low score of 7.27 for Value, indicating that it may be considered overvalued based on its underlying financial fundamentals.
Price Action: According to data from Benzinga Pro, SoundHound shares closed Thursday down 1.42% at $11.09. The stock has a 52-week high of $24.98 and a 52-week low of $3.87.
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How To Buy SOUN Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in SoundHound AI’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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