SoundHound AI Stock Struggles Post-IPO Despite Offering Alternative to Tech Giants

SoundHound AI is an audio and speech recognition company that went public in April 2022 via a SPAC merger. Its stock price has declined significantly from its post-IPO peak.
SoundHound's revenue growth has slowed down recently compared to its initial ambitious projections. It blamed macro headwinds for enterprise customers cutting spending.
Competition is fierce with giants like Microsoft, Google, and Apple. But SoundHound offers an alternative for companies avoiding the tech giants.
Valuation looks reasonable at 11x expected 2023 revenue. But stock may remain out of favor until adjusted EBITDA margin turns positive.
It's an interesting AI stock to watch, but more established players may be better bets in the current market.

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Posted 9/18/2023, 4:35:00 PM