SoundHound AI (SOUN) shares have lost more than 58% of their value this year over concerns about cash burn and losses. The company will report third-quarter results after the market closes on Nov. 5, and the article argues the stock could rise afterward. Second-quarter revenue rose 45% year over year to $62 million, while analysts expect third-quarter revenue to jump 84% to $77.2 million, helped by the LivePerson acquisition completed last month. Management believes the combined company could generate more than $500 million in revenue over the long run, compared with $169 million in 2025. The company has $5.4 million in debt and nearly $203 million in cash, and the stock trades at about 9 times sales.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
SoundHound AIartificial intelligenceearnings
Open a keyword to see other news on the same topic.
Related news
- SoundHound AI Stock Hasn't Been This Cheap in Over 2 Years. Is Now the Time to Buy?
SoundHound AI (SOUN) has lost more than half its value this year and is down over 75% in the past 12 months, trading at levels last seen around September 2024. Revenue in its most recent quarter, ending in June, rose 45% to $61.9 million, but the company posted an operating loss of $43.3 million and burned just under $60 million in operating cash over the past two quarters, versus $43.7 million a year earlier. Growth has relied heavily on acquisitions, and the market cap is about $2.1 billion. The author argues the stock could fall further without a clear path to profitability and an end to cash burn, and advises steering clear until financials improve drastically.
- SoundHound AI Just Dropped 22% in a Month While Enterprise Software Rallied: Is It Time to Sell?
SoundHound AI (SOUN) shares trade at $4.86, down 22% over the past month and 51% year to date, while the iShares Expanded Tech-Software Sector ETF (IGV) rose 10% and the SPDR S&P 500 ETF Trust gained 2% over the same period. Salesforce (CRM, $239.03) fell 3% and ServiceNow (NOW, $139.11) rose 5% in that month, so the article argues the decline is specific to SoundHound rather than a sector-wide selloff in AI agent companies. SoundHound earns revenue from deployment contracts with restaurant chains, automakers and contact-center operators, with each new customer win arriving one at a time, which leaves less buffer when sentiment turns. The article's key question is whether new deployments in these sectors will lift revenue growth enough to re-rate the stock.
- SoundHound AI Slides 5% to Fresh Lows While C3.ai Climbs 4% on Northland Upgrade; UiPath Slips
SoundHound AI (SOUN) fell 5% to $5.14 in early trading, hitting fresh lows and down 48% so far this year. C3.ai (AI) climbed 4% to $11.98 after Northland Capital upgraded it to Outperform and raised its price target to $16, citing a new tool that lets customers build agentic applications using natural language. UiPath (PATH) slipped 2% to $13.26, the iShares Expanded Tech-Software ETF (IGV) dipped 0.8%, and the SPDR S&P 500 ETF (SPY) was virtually unchanged. SoundHound completed its stock-funded acquisition of LivePerson in early September, enlarging its share count while it still reports losses. It held $202.8 million in cash at the end of Q2 2026, and its revenue rose 45% year over year in Q2 2026.
- Prediction: Nvidia Stock Is Going to Soar After Nov. 17
Nvidia's market capitalization tops $5 trillion, and its stock is up nearly 15% in 2026. Revenue in the fiscal 2027 second quarter reached $96.2 billion, up 106% year over year, with a 75% non-GAAP gross margin. The company forecasts about $108 billion in third-quarter revenue, while analysts expect about $109 billion. CEO Jensen Huang sees global AI infrastructure spending reaching $3 trillion to $4 trillion by 2030, and the Vera Rubin platform could generate $40 billion per gigawatt, 60% more than Blackwell. Nvidia trades at about 23 times forward earnings versus 18.6 for the S&P 500, which the author considers reasonable given its growth; the company reports on Nov. 17.
- Will Moderna Soar on Nov. 6?
Moderna (MRNA) stock has soared in the triple digits this year, outpacing AI players such as Nvidia and Micron Technology on investor interest in its mRNA platform and oncology pipeline. Its personalized cancer vaccine, intismeran autogene, is in 10 clinical trials, including a phase 3 melanoma study combined with Merck’s Keytruda, and preliminary August results sent the stock up 177% in one session. A recent data leak from that trial pushed the stock lower, but the full release confirmed the August results, and some investors may have sold to realize gains. Moderna reports third-quarter earnings on Nov. 6, after reiterating that revenue could grow as much as 10% this year, and investors will also watch its flu vaccine launched last month. The author does not expect the stock to soar right after the report, and instead sees the next potential leg up coming ahead of fresh data or a milestone on the personalized cancer vaccine.
- Prediction: Palantir Stock Will Skyrocket After Nov. 2
Palantir shares have risen 62% over the past three months amid renewed confidence in software stocks, ahead of third-quarter results due after the close on Nov. 2. The company has beaten earnings expectations in each of the past four quarters, with Q2 revenue up 93% year over year to $1.93 billion and adjusted operating margin of 62%, versus 46% a year earlier. Consensus expects EPS of $0.46 for the current quarter, a potential 84% increase over last year. The stock trades at 181 times earnings versus 41 for the Nasdaq Composite, but the author argues strong earnings growth could justify the valuation, citing a PEG ratio of 0.63 according to Morningstar. The author suggests a better-than-expected report and guidance could lift the stock after Nov. 2.
Related markets
Latest news
- How major US stock indexes fared Monday 11/2/2026
U.S. stocks' morning rally faded as tech and AI shares stayed shaky after last week's sell-off. The S&P 500 fell 0.5% to 7,541.40 after reaching a 1.1% gain early in the day, while the Nasdaq composite dropped 1.1% to 25,164.32 and the Dow Jones Industrial Average rose 0.4% to 51,983.98. Nvidia swung from an early gain to a loss and weighed on the S&P 500. Most Wall Street stocks still climbed, benefiting from a 7.6% drop in the price of Brent crude. Year to date, the S&P 500 is up 10.2%, the Dow 8.2%, the Nasdaq 8.3% and the Russell 2000 13.1%.
- Crypto investigators flag suspected $106M theft, $786K Solana bot drain
Blockchain investigator ZachXBT said an unidentified EU entity may have lost more than $106 million from accounts on several crypto exchanges on Sunday, with the funds withdrawn as USDC and USDT and then moved through multiple cryptocurrencies and blockchains. The attacker remains unidentified, and ZachXBT said the fund flows did not point to a link with North Korea's Lazarus Group. Separately, a wallet tied to King, a Solana arbitrage bot, may have lost about $786,000 on Monday, according to Onchain Lens, which said the funds moved through Solana wallets and were transferred to Ethereum via Mayan. King's operator has not confirmed a compromise. These incidents follow the $6.3 billion Binance hack on Oct. 29, which the FBI attributed to North Korean hackers known as TraderTraitor.
- Mystery $106 Million Crypto Theft Hits EU Entity Days After Binance Hack
An unnamed entity in the European Union is suspected of losing more than $106 million from several centralized exchange accounts on Nov. 1, according to ZachXBT, with the funds withdrawn as USDC and USDT. The attacker then swapped stablecoins for ETH, used instant exchanges, converted some funds to Monero and bridged assets across blockchains to obscure their trail. ZachXBT published 11 Ethereum addresses tied to the theft and said with “a high degree of confidence” that the attacker is not Lazarus Group, setting it apart from the $6.4 billion Binance hack, in which stablecoin issuers moved to freeze funds within minutes. It is unclear whether any funds from this case have been frozen.
- Micron Expected to Launch Massive Stock Buybacks in December. What to Know.
Micron Technology is likely to step up its share buybacks from Dec. 9, after federal CHIPS Act restrictions on repurchases expire.
- Palantir reports booming U.S. commercial revenue growth, topping government for first time
Palantir beat Wall Street's third-quarter estimates after the bell on Monday, with adjusted earnings of 44 cents per share versus 41 cents expected and revenue of $2.31 billion versus $2.18 billion. U.S. commercial revenue rose 148% to $984 million, topping U.S. government revenue of $953 million (up 96%) for the first time. Net income more than doubled to $1.13 billion. Palantir raised its full-year U.S. commercial revenue outlook to “in excess of” $3.56 billion from $3.42 billion, and projects about $2.65 billion in fourth-quarter revenue and about $8.53 billion for full-year 2026.
- Palantir earnings reveal a major AI turning point
In the third quarter, Palantir's U.S. commercial business brought in more money than its U.S. government segment. This was a key point in the company's earnings report.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.