SoundHound stock is getting closer to removing a huge overhang

October 29, 2024 07:40 AM PDT | By Invezz

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SoundHound stock is getting closer to removing a huge overhang — Image source: Invezz

SoundHound may achieve profitability in 2025

SoundHound could be a lucrative investment as it offers exposure to continued growth in artificial intelligence.

Still, there’s been a lot of negativity around this name.

Why? Primarily because it’s losing money.

But the company’s management is now fully committed to removing that huge overhang by 2025.

It’s devotion to achieving profitability by next year makes now a suitable time to build a position in SOUN as equities typically tend to be forward looking.

Investing in SoundHound after it turns a profit may not be as lucrative since much of the good news may already be baked into its share price by then.

Additionally, the California based company has a debt-free balance sheet that should enable investors to park a part of their capital in SoundHound stock with some confidence.

SoundHound AI Inc does not currently pay a dividend, though.

SoundHound is making exciting acquisitions

SoundHound stock is worth investing at writing also because it’s making strategic acquisitions to unlock its next phase of growth.

For example, the Nasdaq-listed firm spent about $80 million in August to acquire Amelia – an enterprise software company that it expects will contribute more than $45 million in recurring AI revenue from 2025.

Buying Amelia helped SOUN extend its services to financial services, insurance, healthcare, and retail verticals.

Together, the merged company now serves about 200 clients, including Fortune 500 companies and top 15 global banks.

SoundHound AI Inc has recently partnered with Perplexity and Connex2X to improve its chat and connected vehicle capabilities as well.

Other notable acquisitions that this voice AI company has made this year include Allset (food ordering platform).

Note that SOUN’s offering are exciting enough to have attracted $3.7 million in investment from the AI leader Nvidia Corp.

That’s part of the reason why Wall Street currently sees a 30% upside in SoundHound share price to $7.80 on average.

The post SoundHound stock is getting closer to removing a huge overhang appeared first on Invezz

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