SoundHound AI (SOUN) shares have fallen more than half this year and over 75% in the past 12 months, trading at levels last seen around September 2024. In its most recent quarter, ended in June, revenue rose 45% to $61.9 million, but the company posted an operating loss of $43.3 million. Over the past two quarters, cash burn from day-to-day operations totaled just under $60 million, up from $43.7 million in the same period a year earlier. The author notes that growth has relied heavily on acquisitions, making organic growth hard to gauge, and with a market cap of around $2.1 billion, argues the low share price does not offset the lack of a clear path to profitability. The author therefore advises steering clear of the stock until its financials improve significantly.
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Original headline: SoundHound AI Stock Hasnt Been This Cheap in Over 2 Years . Is Now the Time to Buy ?
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