Look, I’ve been avoiding SoundHound AI (SOUN) for almost a year now. Not because I don’t get it-I do. I get it like I get that tequila at 2 a.m. seems like a genius idea until your kidneys stage a revolt. This company? It’s got the tech world’s equivalent of a Michelin-starred kitchen: AI voice recognition so sharp it could probably order your coffee and your therapy sessions. But the stock price? Let’s just say if its valuation were a cocktail, it’d knock you sideways.
Anyway. The meme-stock fever from December 2024 has cooled off like a leftover croissant. SoundHound’s still cranking out business wins, though. So… is this the moment to finally cave and buy in? Or is that voice in your head whispering “Don’t do it, you’ll regret it at 3 a.m.” actually your last shred of financial sanity?
Let’s dissect this like we’re picking apart a bad Tinder date.
The numbers? They’ll make your accountant cry
Okay. Let’s start with the obvious: This stock is still expensive enough to make a venture capitalist blush. Trading at 38 times trailing sales-like buying a Tesla with a lemonade stand budget. And profits? Honey, this company is burning cash faster than I burn through self-help books trying to fix my emotional damage. Q2 2025: $78 million operating loss on $42.7 million in revenue. Ouch.
Some of that’s accounting gymnastics, sure. But the rest? Real stuff. Cost of revenue jumped from $5M to $26M. Sales and marketing? Tripled. They’re not just spending money-they’re wedding planning it. And the cash flow? -$18.5 million operating. They’re keeping the lights on by selling shares like they’re hot singles dropping every Friday. Which… works until it doesn’t. Diluted share count up 21% last year. Existing shareholders like me? We’re getting a 21% bigger slice of a pie that’s somehow getting smaller. Classic.
The upside: Is it hope or hallucination?
Alright, let’s pivot. SoundHound’s revenue tripled YoY. Tripled. Their sales team’s out there like a rom-com lead, closing deals on long-term contracts. Last year’s backlog: $1.2 billion in unfilled orders. Management’s like, “We’ll only report this metric annually now,” which feels less “strategic pivot” and more “let’s hide the bodies.” But if that backlog’s real? It’s a multiyear revenue goldmine. At 4.2x that figure, the stock’s suddenly… not insane. Just mildly unhinged.
And the growth! Car companies, drive-thrus, phone menus-they’re everywhere. I can see this becoming a tech titan. In, like, five years. If we survive the apocalypse.
Buy, sell, or run for the hills?
Here’s the thing: This could go so right or so wrong. Dilution’s a nightmare. Competition’s circling like vultures at a vegan picnic. What if someone builds better AI? Suddenly that $1.2B backlog’s a ghost town. And the market? It’s pricing this like a guaranteed homerun. No risk discount. Zero. Like buying a parachute and assuming gravity’s just a suggestion.
I’m not selling my shares. But I’m not buying more either. It’s like keeping an ex on speed dial-thrilling, terrible, and possibly catastrophic. If you’ve got a stomach for chaos and a portfolio that can survive a disaster, maybe. But if you’re here looking for a “buy” button? Darling, I’m still Googling “how to unring a bell.”
Invest wisely. Or don’t. I’m just here to ruin your sleep. 🎵
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2025-08-23 20:24