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.
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