Shares of SoundHound AI (SOUN) surged in after-hours trading after the voice AI software company reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at -$0.04, which beat analysts’ consensus estimate of -$0.09 per share. Sales increased by 53.8% year-over-year, with revenue hitting $13.46 million. This beat analysts’ expectations of $13.095 million.
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Looking forward, management now expects revenue for FY 2024 to exceed $80 million. For reference, analysts were expecting $70.294 million in revenue for 2024.
Investor Sentiment for SOUN Stock
The sentiment among TipRanks investors is currently very positive. Out of the 746,050 portfolios tracked by TipRanks, 1.3% hold SOUN stock. In addition, the average portfolio weighting allocated towards SOUN among those who do have a position is 5.34%. This suggests that investors in the company are fairly confident about its future. Furthermore, in the last 30 days, 1% of those holding the stock increased their positions. As a result, the stock’s sentiment is above the sector average, as demonstrated in the following image:
What’s interesting about the 1.3% figure is that it has increased from 0.9% since the last earnings report. This means that investor interest in the stock is increasing, and if the company keeps up its solid growth rate, there is plenty of room for more investors to pile in, which could potentially push the stock higher.
Is SOUN Stock a Good Investment?
Turning to Wall Street, analysts have a Strong Buy consensus rating on SOUN stock based on four Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 134% rally in its share price over the past year, the average SOUN price target of $7.50 per share implies 56.9% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
