ServiceNow went public in 2012, and a $1,000 investment in its IPO is now worth over $38,000, a gain of 3,770%. The company reported $244 million in sales in 2012 and $10.5 billion over the last 12 months. In contrast, electric vehicle maker Lucid Group has seen a 75% decline in stock value since its IPO, trading more than 95% below its peak.
SoundHound AI (NASDAQ: SOUN) is highlighted as a promising investment opportunity. The global revenue for voice recognition, in which SoundHound is a player, is expected to grow from $7 billion in 2024 to nearly $16 billion by 2030. SoundHound has reported a recent cash reserve of $200 million with no long-term debt and forecasted sales of over $80 million for 2024 and $150 million for 2025, reflecting a 54% year-over-year growth in revenue last quarter to $13.5 million.
Currently, SoundHound’s stock is trading at 26 times sales, but this is projected to drop to 12.5 based on anticipated 2025 sales. Analysts are optimistic, with six out of seven recommending a “buy” or “strong buy” and an average price target of $7.79, indicating a potential 50% increase from the current share price.
