Prepare for SoundHound AI’s Possible Comeback in 2025
It’s wise to think about the future.
Currently, one of the fastest-growing stocks, SoundHound AI (NASDAQ: SOUN), may not be a good investment, but that could change by 2025. The stock price is currently high and is expected to drop in the coming months, while the company’s long-term prospects remain strong.
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Why SoundHound AI Has a Promising Future
SoundHound AI has a bright outlook ahead.
Voice technology is becoming popular across many sectors. Examples include ordering at drive-throughs and navigating phone menus, along with in-car systems and various electronics. Major tech companies like Apple with Siri and Amazon with Alexa are also involved in voice interpretation technologies.
Despite competition from larger firms, SoundHound AI is securing voice-control contracts in numerous areas. The company already has partnerships with several automakers and fast-food chains, and it continuously expands its product line. Recently, SoundHound AI combined its two main technologies to allow food ordering directly through car stereo systems.
Current Stock Prices Are Too High
However, I’m not ready to buy SoundHound AI right now. I sold about half of my shares in December to take advantage of a recent price increase.
SoundHound AI gained attention in various online meme stock communities, leading to a significant price spike due to a high interest from short-sellers. This trend peaked during the holiday season. Currently, the stock is trading around 47% lower than its peak.
I plan to increase my investment in SoundHound AI, but I believe it’s wise to wait. When Nvidia made a small investment in the spring of 2024, it sparked rumors of a potential buyout or partnership, which never materialized. Throughout that period, the stock never reached $9.
I remain optimistic about SoundHound AI’s future, but several variables could affect its path. The stock value still doesn’t justify the high prices it reached recently, peaking at a price-to-sales ratio of 110.5 on December 26. Although it has since decreased to 73 times sales on January 13, this remains excessively high.
If the stock price falls to single digits, I will reevaluate my position. Additionally, I’m keeping an eye on the company’s growth. The report for the