Reported 6 months ago
SoundHound AI's stock has surged by 138% this year, with strong revenue growth reported in the first quarter of 2024. Despite this, the company is still relatively small and burning cash at a higher rate, leading to operating losses. While SoundHound AI holds a significant cash balance, it raised capital by selling $137 million worth of stock, which may have inflated share prices. The stock is currently overvalued with a P/S ratio of 24.8, making it a speculative investment with considerable risks, especially with increasing competition in the AI voice recognition sector. The article suggests that there are potentially stronger investment opportunities in the AI landscape from larger and more established companies.
Source: YAHOO