Is SoundHound Stock a Good Investment?
SoundHound Investment Advice | SOUNW |
- Examine SoundHound's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research SoundHound's leadership team and their track record. Good management can help SoundHound navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Application Software space and any emerging trends that could impact SoundHound's business and its evolving consumer preferences.
- Compare SoundHound's performance and market position to its competitors. Analyze how SoundHound is positioned in terms of product offerings, innovation, and market share.
- Check if SoundHound pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about SoundHound's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in SoundHound AI stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if SoundHound AI is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Dangerous | Details | |
Hype Condition | Over hyped | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very High | Details | |
Economic Sensitivity | Hyperactively responds to market trends | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Sell | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Inapplicable | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine SoundHound Stock
Researching SoundHound's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The company recorded a loss per share of 6.57. SoundHound AI had not issued any dividends in recent years.
To determine if SoundHound is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding SoundHound's research are outlined below:
| SoundHound AI generated a negative expected return over the last 90 days | |
| SoundHound AI has high historical volatility and very poor performance | |
| SoundHound AI has a very high chance of going through financial distress in the upcoming years | |
| SoundHound AI has accumulated 4.35 M in total debt. SoundHound AI has a current ratio of 0.3, indicating that it has a negative working capital and may not be able to pay financial obligations in time and when they become due. Note, when we think about SoundHound's use of debt, we should always consider it together with its cash and equity. | |
| The entity reported the revenue of 84.69 M. Net Loss for the year was (350.68 M) with profit before overhead, payroll, taxes, and interest of 41.38 M. | |
| SoundHound AI has accumulated about 21.63 M in cash with (108.88 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.76. | |
| SoundHound AI has a frail financial position based on the latest SEC disclosures | |
| Latest headline from news.google.com: Behind the Scenes of SoundHound AIs Latest Options Trends - Benzinga |
SoundHound's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | (1.26) | (1.33) | |
| Return On Capital Employed | (0.70) | (0.74) | |
| Return On Assets | (0.63) | (0.66) | |
| Return On Equity | (1.92) | (1.82) |
Determining SoundHound's profitability involves analyzing its financial statements and using various financial metrics to determine if SoundHound is a good buy. For example, gross profit margin measures SoundHound's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of SoundHound's profitability and make more informed investment decisions.
SoundHound's Earnings Breakdown by Geography
Please note, the imprecision that can be found in SoundHound's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of SoundHound AI. Check SoundHound's Beneish M Score to see the likelihood of SoundHound's management manipulating its earnings.
Evaluate SoundHound's management efficiency
The company has return on total asset (ROA) of (0.1982) % which means that it has lost $0.1982 on every $100 spent on assets. This is way below average. Similarly, it shows a return on equity (ROE) of (3.3268) %, meaning that it generated substantial loss on money invested by shareholders. SoundHound's management efficiency ratios could be used to measure how well SoundHound manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to -1.33 in 2025. Return On Capital Employed is likely to drop to -0.74 in 2025. At this time, SoundHound's Total Assets are fairly stable compared to the past year. Non Current Assets Total is likely to climb to about 313.4 M in 2025, whereas Other Assets are likely to drop slightly above 3.9 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 0.54 | 0.57 | |
| Tangible Book Value Per Share | (0.28) | (0.29) | |
| Enterprise Value Over EBITDA | (19.82) | (18.82) | |
| Price Book Value Ratio | 36.76 | 38.60 | |
| Enterprise Value Multiple | (19.82) | (18.82) | |
| Price Fair Value | 36.76 | 38.60 | |
| Enterprise Value | 6.5 B | 6.8 B |
Leadership effectiveness at SoundHound AI is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Beta 2.843 |
Basic technical analysis of SoundHound Stock
As of the 22nd of March, SoundHound has the Semi Deviation of 10.9, risk adjusted performance of 0.0246, and Coefficient Of Variation of 5821.51. In relation to fundamental indicators, the technical analysis model makes it possible for you to check existing technical drivers of SoundHound AI, as well as the relationship between them. Please validate SoundHound AI jensen alpha and semi variance to decide if SoundHound is priced more or less accurately, providing market reflects its prevalent price of 4.18 per share. Given that SoundHound AI has jensen alpha of 0.4077, we advise you to double-check SoundHound AI's current market performance to make sure the company can sustain itself at a future point.SoundHound's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific SoundHound insiders, such as employees or executives, is commonly permitted as long as it does not rely on SoundHound's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases SoundHound insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Michael Zagorsek over a month ago Disposition of 42500 shares by Michael Zagorsek of SoundHound at 2.4795 subject to Rule 16b-3 | ||
James Hom over two months ago Disposition of 500000 shares by James Hom of SoundHound subject to Rule 16b-3 | ||
Timothy Stonehocker over two months ago Disposition of 3261 shares by Timothy Stonehocker of SoundHound at 3.164 subject to Rule 16b-3 | ||
Timothy Stonehocker over six months ago Disposition of 10000 shares by Timothy Stonehocker of SoundHound at 5.0 subject to Rule 16b-3 | ||
Timothy Stonehocker over six months ago Disposition of 4178 shares by Timothy Stonehocker of SoundHound at 3.6609 subject to Rule 16b-3 | ||
Majid Emami over six months ago Acquisition by Majid Emami of 21670 shares of SoundHound subject to Rule 16b-3 | ||
Keyvan Mohajer over six months ago Acquisition by Keyvan Mohajer of 600000 shares of SoundHound subject to Rule 16b-3 | ||
Majid Emami over six months ago Disposition of 11666 shares by Majid Emami of SoundHound at 3.6609 subject to Rule 16b-3 |
Understand SoundHound's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing SoundHound's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0246 | |||
| Market Risk Adjusted Performance | 0.0888 | |||
| Mean Deviation | 9.25 | |||
| Semi Deviation | 10.9 | |||
| Downside Deviation | 11.38 | |||
| Coefficient Of Variation | 5821.51 | |||
| Standard Deviation | 12.96 | |||
| Variance | 168.0 | |||
| Information Ratio | 0.022 | |||
| Jensen Alpha | 0.4077 | |||
| Total Risk Alpha | 1.27 | |||
| Sortino Ratio | 0.025 | |||
| Treynor Ratio | 0.0788 | |||
| Maximum Drawdown | 70.56 | |||
| Value At Risk | (19.53) | |||
| Potential Upside | 22.42 | |||
| Downside Variance | 129.45 | |||
| Semi Variance | 118.73 | |||
| Expected Short fall | (10.75) | |||
| Skewness | 0.6259 | |||
| Kurtosis | 1.54 |
| Risk Adjusted Performance | 0.0246 | |||
| Market Risk Adjusted Performance | 0.0888 | |||
| Mean Deviation | 9.25 | |||
| Semi Deviation | 10.9 | |||
| Downside Deviation | 11.38 | |||
| Coefficient Of Variation | 5821.51 | |||
| Standard Deviation | 12.96 | |||
| Variance | 168.0 | |||
| Information Ratio | 0.022 | |||
| Jensen Alpha | 0.4077 | |||
| Total Risk Alpha | 1.27 | |||
| Sortino Ratio | 0.025 | |||
| Treynor Ratio | 0.0788 | |||
| Maximum Drawdown | 70.56 | |||
| Value At Risk | (19.53) | |||
| Potential Upside | 22.42 | |||
| Downside Variance | 129.45 | |||
| Semi Variance | 118.73 | |||
| Expected Short fall | (10.75) | |||
| Skewness | 0.6259 | |||
| Kurtosis | 1.54 |
Consider SoundHound's intraday indicators
SoundHound intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of SoundHound stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
SoundHound Corporate Filings
10K | 11th of March 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
| 4th of March 2025 Other Reports | ViewVerify | |
8K | 27th of February 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
| 31st of January 2025 Other Reports | ViewVerify |
SoundHound Stock media impact
Far too much social signal, news, headlines, and media speculation about SoundHound that are available to investors today. That information is available publicly through SoundHound media outlets and privately through word of mouth or via SoundHound internal channels. However, regardless of the origin, that massive amount of SoundHound data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of SoundHound news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of SoundHound relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to SoundHound's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive SoundHound alpha.
SoundHound Corporate Management
| Timothy Stonehocker | Chief Officer | Profile | |
| Michael Zagorsek | Chief Officer | Profile | |
| Warren JD | Senior Counsel | Profile | |
| Nitesh CFA | Chief Officer | Profile | |
| Warren Heit | Senior Counsel | Profile | |
| CSM ITIL | Advisor | Profile |
Additional Tools for SoundHound Stock Analysis
When running SoundHound's price analysis, check to measure SoundHound's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy SoundHound is operating at the current time. Most of SoundHound's value examination focuses on studying past and present price action to predict the probability of SoundHound's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move SoundHound's price. Additionally, you may evaluate how the addition of SoundHound to your portfolios can decrease your overall portfolio volatility.