Some short -term market pain can prepare for long -term gains. This is what is happening Soundhound ai(Nasdaq: Soun) now.
Wall Street retracts the price Nasdak Arrows are due to economic uncertainty (the index has decreased nearly 14 % of its highest level ever to this writing), and Soundhound Ai shares more than 22 % so far in March. An investors should be able to achieve long -term mint by picking up promising technology shares, and now trading at a more reasonable price.
I was a fan of Soundhound AI for years. The company was innovative of artificial intelligence (AI) a long time before being cold. The application of identifying songs allowed since 2006-before years of the first shelves of modern smartphones stores. The application has created an unparalleled store for audio data and user satisfaction degrees, adding to AI’s sound interpretation system.
So I was enthusiastic about seeing Soundhound AI entering the public stock market in a batch to expand its business horizon. Lessons learned from songs identifiers have evolved into a voicing assistant for general purposes. Soundhound AI has found valuable ways to use this AI tool in commercial operations, starting with Windows and the phone -based menu systems to the control and entertainment controls inside the car.
Soundhound Ai is a pioneer in the market value of business for advertisers, e -commerce dealers, applications and creative technological products. The company tears pages of money playing books from alphabetand Amazonand appleAnd Microsoftrespectively. This is an impressive collection of role models.
Of course, it is somewhat early compared to Soundhound Ai with an ideal set of the four “wonderful” names. I see this comparison as an ambitious long -term goal, not a promise of immediate success. But I am convinced that Soundhound Ai stands at the beginning of the profitable growth story. A trillion dollar shares may not be in the preparation phase, but it is starting to make a modest valuable in the process of selling the printed NASDAQ market.
Despite the wonderful business prospects at Soundhound AI, the stock rose for all the wrong reasons in 2024. Nafidia He investigated a small in the arrow of Soundhound Ai. NVIDIA now closed this position after starting promising cooperation with the smaller artificial intelligence company.
Soundhound Ai has also become a reserve of M. last fall. The continuous price increased from NVIDIA investment inspired a lot of short sale of Soundhound Ai, which then led to social media channels in an attempt to start the short pressure on prices. This effort led to the peak of $ 24.23 per share around the holidays, followed by a decline and one of the trading volumes in 2025.
The short seller’s interest has decreased to floating the Soundhound AI market for a short period, but is now back to higher levels:
Ycharts data.
It is fair to say that the era of Meme-Stock has ended for Soundhound Ai investors. The stock price has decreased in a two -number area again, which is higher than the NVIDIA boom peaks, but with the help of developing another public business.
I got some profits at Soundhound AI in early December, but I am now buying this stock again. It still looks very expensive through traditional evaluation measures, with negative profits of each type and a price rate of 40.6. But this decreased from 110.5 in late December, and the P/S P/S does not represent the large Soundhound Ai accumulation of non -full orders.
The company will not convert its accumulation of $ 1.2 billion into revenues in one blow, as it is based on an increasing group of multi -year contracts. Suppose a four -year average transformation period and a complete stop for the growth of Soundhound Ai. Under these conservative assumptions, the arrow is traded by 11 times annual contract. And do not forget that actual revenues are more than twice the fourth quarter report last month-Soundhound Ai continues sales growth promises.
So I couldn’t recommend the arrows of Soundhound AI with a straight face for most 2024, but things are different now. Business grows as expected, the chance of a long -term market is still huge, and the stock began to appear accessible to everyone in the last Nasdak sale.
Before buying stocks at Soundhound AI, think about this:
the Motley Adviser is a lie The analyst’s team has just identified what they think 10 best stocks For investors to buy now … Soundhound Ai was not one of them. The ten shares that made the pieces can produce monster revenues in the coming years.
Look at when Nafidia This list was presented on April 15, 2005 … if you invest $ 1,000 at the time of our recommendation, You will have 690,624 dollars!
Now, it is worth notingStock consultantAverage overall return821 %-Out of magic in the market compared to167 %For S&P 500. Don’t miss the latest 10 best list, available when joiningStock consultant.
See the ten stocks »
*The stock consultant dates back from March 10, 2025
John Maki, former Chole Foods Market, a affiliate company, a member of the Motley Fool Board of Directors. Susan Fry, CEO of Alphabet, is a member of the Motley Fool Board of Directors. Anders byLund has positions in Alphabet, Amazon, Nvidia and Soundhound AI. Motley Fool has positions in Alphabet, Amazon, Apple, Microsoft and Nvidia. Motley Fool Nasdaq recommends the following options: A student in January 2026 $ 395 on Microsoft and Short January $ 2026 on Microsoft. Motley Fool has a disclosure policy.
Nasdak Sell: It is time to buy this market, my darling, was originally published by Motley Fool
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