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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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