Posted 2/29/2024, 2:37:35 AM
Analyst Downgrades SoundHound AI on Valuation Concerns Despite Promising Tech
- Generative AI stocks like SoundHound AI (SOUN) have rallied recently, but analyst sees valuation as too high
- SoundHound's conversational AI tech shows promise for practical uses like drive-thrus
- But challenges with implementation in restaurants could limit near-term revenue
- Current valuation of 28x FY24 revenue is "pricey" relative to growth
- Analyst downgrades SOUN from Buy to Hold due to valuation concerns after 300%+ surge