Posted 4/15/2024, 2:15:00 PM
SoundHound AI Stock Soars on Hype, But Risky Fundamentals Raise Investment Concerns
- SoundHound AI stock has soared on hype about its Nvidia partnership, but author believes it's not a good AI investment due to risky fundamentals
- Revenue is highly concentrated on a few key customers that keep changing each year, raising questions
- Company is burning $60M+ per year and keeps raising money through share offerings, diluting investors
- Valuation of 13x forward sales may seem appealing, but author sees too many concerning signals
- Despite compelling vision and growth forecasts, author advises avoiding stock due to dependence on capital raises and lack of profits