Posted 4/14/2024, 1:15:00 PM
AI IPO Darlings BigBear and SoundHound Struggle to Deliver Growth Promised to Investors
- BigBear.ai and SoundHound AI are AI companies that went public via SPACs but have struggled, with stocks down 80-90% from highs
- BigBear provides data analytics to government and enterprises but has badly missed financial targets
- SoundHound builds speech recognition tools and has a wide customer base but also missed targets and laid off nearly half its staff
- SoundHound is growing over 50% annually still, while BigBear expects 26-39% growth this year
- SoundHound seems the better buy given faster organic growth, wider competitive moat, and 75% gross margins