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SoundHound AI, Inc. (SOUN) Dips More Than Broader Markets: What You Should Know

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SoundHound AI, Inc. (SOUN - Free Report) closed at $2.82 in the latest trading session, marking a -1.74% move from the prior day. This change lagged the S&P 500's 0.41% loss on the day. Meanwhile, the Dow lost 0.11%, and the Nasdaq, a tech-heavy index, lost 4.08%.

Prior to today's trading, shares of the company had gained 50.26% over the past month. This has outpaced the Computer and Technology sector's gain of 9.46% and the S&P 500's gain of 6.51% in that time.

Investors will be hoping for strength from SoundHound AI, Inc. as it approaches its next earnings release. On that day, SoundHound AI, Inc. is projected to report earnings of -$0.10 per share, which would represent year-over-year growth of 95%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $7.24 million, up 68.76% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.28 per share and revenue of $45.89 million. These totals would mark changes of +61.64% and +47.43%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SoundHound AI, Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SoundHound AI, Inc. is currently a Zacks Rank #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 36% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SOUN in the coming trading sessions, be sure to utilize Zacks.com.


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