The rapid adoption of artificial intelligence (AI) in general is increasing the demand for voice and conversational AI. SoundHound AI (SOUN) is gaining attention because its sophisticated platform can take orders at drive-through restaurants, train employees by providing interactive access to training modules, help consumers understand the features of their vehicle, and more.
Cantor Fitzgerald analyst Thomas Blakey recently upgraded the firm’s rating on SoundHound from “Overweight” to “Neutral” and raised the price target from $13 to $15. “SoundHound AI has executed very well, in our view, cross-selling and upselling voice and conversational AI services to its installed base, as well as expanding fully automated voice volumes related to its acquisition of (enterprise AI company) Amelia in late summer 2024,” he said in his note.
Is SoundHound AI a buy right now? Let’s take a look.
California-based SoundHound operates an independent voice AI platform that helps connect brands to people through customized conversations and voice-enabled products, services, and apps. The fast-growing company has a market capitalization of $4.6 billion.
SoundHound stock exploded higher along with the market’s interest in AI, rising 800% over the last three years. But 2025 has been a different story, as SOUN stock retrenched. Shares are down 43% year-to-date.
The company is not yet profitable, so the best way to consider its valuation is the price-to-sales ratio, which is currently 53.5x, a hefty price even for a technology stock.
Part of the stock’s performance so far this year can be attributed to its earnings performance. SoundHound missed on earnings for each of the last two quarters.
Revenue in the third quarter was up 68% from a year ago to $42 million, a quarterly record for the company. But the net loss of $109.3 million was a steep decline from the year-ago loss of $21.7 million. And the earnings per share (EPS) loss of $0.27 was much worse than analysts’ expectations for a loss of $0.07 per share.
