SoundHound AI (SOUN), a voice AI software company, will release its Q4 results today. SOUN stock has risen over 54% in the past year, driven by strong adoption of its voice AI technology, consistent demand for its products, and key partnerships, including an investment from Nvidia (NVDA). Encouragingly, SoundHound is expected to post revenues of $33.70 million in Q4, implying another superb year-over-year growth of 96.5%, according to TipRanks’ data.
However, the company is still expected to post a net loss of around $0.10 per share, greater than the $0.07 per share loss reported in the prior-year quarter.
Analysts’ Views on SOUN Ahead of Q4 Results
Ahead of SoundHound’s Q4 results, analyst Thomas Blakey of Cantor Fitzgerald initiated a Hold rating on the stock with a price target of $10 per share.
The analyst sees promise in the company’s advanced voice AI tech, which powers cars, smart devices, and quick-service restaurants. He is also optimistic about the SOUN’s future growth potential, including subscription services and new revenue-sharing models. However, Blakey believes that the stock is pricey at current levels. He feels the current share price reflects much of the company’s upside and therefore sees limited room for further gains.
Meamwhile, H.C. Wainwright analyst of Scott Buck reiterated a Buy rating on SOUN stock with a price target of $26.
Buck is hopeful about SoundHound’s voice commerce system, which links SoundHound cars to partner restaurants. With 10 million SoundHound-enabled cars on North American roads, management thinks this could bring in $500 million a year. Buck believes these chances could boost the company’s top-line growth, going forward.
Options Traders Anticipate a Large Move
Using TipRanks’ Options tool, we can see what options traders are expecting from the stock immediately after its earnings report. The expected earnings move is determined by calculating the at-the-money straddle of the options closest to expiration after the earnings announcement. If this sounds complicated, don’t worry, the Options tool does this for you.
Indeed, it currently says that options traders are expecting an 18.76% move in either direction.
Is SoundHound Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SOUN stock based on 2 Buys and two Holds assigned in the past three months, as indicated by the graphic below. The average SOUN price target of $16.50 per share implies 85.39% upside potential.
