SoundHound Faces Uphill Battle Despite Voice Recognition Services, According to Analysts
-
SoundHound AI provides commodity voice recognition services in a crowded market with big competitors like Apple, Amazon, and Alphabet.
-
SoundHound has vague metrics like "subscription backlog" that make its growth hard to analyze.
-
The company uses one-time contract termination fees to inflate revenue and margins.
-
Research firm Capybara believes SoundHound's stock is vastly overvalued and set a $1 price target.
-
Investors should be wary of SoundHound until it shows consistent organic revenue growth and reduces cash burn.