SoundHound: Another AI Hype Train?

So, this SoundHound AI. Apparently, it lost almost half its value last year. Forty-nine percent! You know what that tells me? It tells me people finally woke up. It’s like when you’re at a party, and everyone’s pretending that the host’s abstract sculpture is brilliant, and then someone finally says, “It looks like a twisted coat hanger.” That’s what’s happening here. Only with millions of dollars.

They make this “conversational AI” software. Which, as far as I can tell, means it talks to things. Cars, restaurants… It’s supposed to be revolutionary. They’re putting it in fast food drive-thrus. Drive-thrus! Like we need more automation taking perfectly good jobs. And what happens when it doesn’t understand your order? “I said no pickles! No pickles!” And then you’re arguing with a machine. It’s a nightmare. A complete and utter nightmare.

They’ve got this “Dynamic Kiosk” thing too. A kiosk! As if navigating a touchscreen while trying to order a burger isn’t stressful enough. Now it’s dynamic? What does that even mean? It moves? It judges your choices? And they’re bragging about it. Honestly, the nerve.

Then there’s this “Employee Assist.” Voice-activated handbook for workers. So, instead of, you know, training people, they’re relying on a robot to tell them how to do their jobs? It’s just…lazy. And what happens when the Wi-Fi goes down? Everyone’s just standing around, helpless. It’s a disaster waiting to happen.

And now they’ve acquired a company called Amelia. Agentic AI. More jargon. Apparently, it handles customer service. Great. Another layer of robotic indifference between you and a human being who might actually solve your problem. BNP Paribas is using it. BNP Paribas! As if banking isn’t already complicated enough. Now you’re explaining your mortgage to a computer. It’s…it’s just too much.

SoundHound’s Revenue is…Growing?

They’re claiming revenue is up 103%. One hundred and three percent! Okay, fine. But at what cost? They’re spending money like it’s going out of style. Marketing costs doubled! Doubled! And administrative costs jumped 43%. It’s like they’re trying to lose money as quickly as possible. They had a net loss of over $100 million. A hundred million dollars! And they’re calling this progress? It’s absurd.

They have $269 million in cash. $269 million. That sounds like a lot, right? But they’re burning through it at this rate, they’ll be begging for handouts in a couple of years. And then what? Diluting existing shareholders? Wonderful. Just wonderful.

Still Expensive, Even After the Crash

The price-to-sales ratio is 27.9. Twenty-seven point nine! And they’re comparing themselves to Nvidia, which is at 24.6. Nvidia actually makes things. They have a solid business. SoundHound is…what is it, exactly? A collection of buzzwords and a rapidly dwindling bank account? It’s infuriating.

Wall Street thinks they’ll make $230.2 million next year. Okay, let’s say they do. That puts the forward P/S ratio at 18.8. Still high. Still ridiculous. They’re relying on projections. Projections! As if those are ever accurate. It’s all smoke and mirrors.

So, maybe the stock will go up a little. Maybe. But honestly, I wouldn’t touch it with a ten-foot pole. It’s too volatile. Too risky. And frankly, I have better things to do with my money. Like paying for therapy to deal with the stress of watching these tech bubbles inflate and then inevitably burst.

In conclusion, there’s a chance this stock will recover some of its losses. But it’s a small chance. And even if it does, it’s probably not worth the headache. Keep your positions small, if you absolutely must, and prepare for the inevitable disappointment. It’s just…common sense. Isn’t it?

2026-01-29 13:33

SoundHound’s Revenue is…Growing?

Still Expensive, Even After the Crash

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