Wall Street Analysts Predict Future Performance for SoundHound Stock

Monday, 12 August 2024, 10:50

SoundHound (NASDAQ: SOUN) has gained traction in the AI sector following a recent acquisition. The company saw a stock price surge of nearly 20% after acquiring Amelia for $80 million, aiming to diversify its customer base and increase market share. Despite strong quarterly earnings, a larger GAAP loss led to a decline in trading. Analysts have responded positively to the acquisition, with revised ratings and price targets reflecting optimism for future growth.
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Wall Street Analysts Predict Future Performance for SoundHound Stock

SoundHound's Recent Stock Performance

SoundHound (NASDAQ: SOUN) stock exemplifies the diverse strategies within the current AI rally. Following the announcement of an $80 million acquisition of Amelia enterprise, the stock surged almost 20%.

Quarterly Earnings Report Insights

On August 8, SoundHound reported earnings that exceeded expectations, with revenue of $11.6 million against projections of $10.1 million. The company has raised its full-year revenue forecast to $65 million to $77 million, despite reporting a larger GAAP loss.

Wall Street's Perspective on the Acquisition

  • Cantor Fitzgerald upgraded SoundHound, raising price targets from $5 to $7.
  • Analyst Brett Knoblauch noted the acquisition's potential for significant recurring revenue and access to high-profile customers.
  • Wedbush’s Dan Ives reiterated an “outperform” rating with a $9 price target, highlighting broadening market access.

Looking Ahead

SoundHound's CEO, Keyvan Mohajer, expressed confidence in AI's transformative capabilities and its potential to enhance profit margins across industries. The future looks promising as SoundHound aims to leverage its recent acquisition for substantial growth.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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