SoundHound AI Sees Major Growth Amidst Competitive Landscape

SoundHound AI has demonstrated impressive stock performance with over 940% growth in the past year, driven by significant revenue increases and support from Nvidia. Conversely, its high valuation and unprofitability could pose risks to future stock performance.

Date: 23-12-2024

AI Rating: 7

Earnings Per Share (EPS): The report indicates that Innodata is expected to turn profitable this year and grow its EPS at a CAGR of 21% over the next two years. This growth reflects a promising future for the company, enhancing its attractiveness to investors.

Revenue Growth: SoundHound's revenue has grown 47% in both 2022 and 2023, with forecasts of 79%-85% revenue growth in 2024 and 86%-110% growth in 2025. Innodata's revenue growth is expected to accelerate from a CAGR of 12% (2019-2023) to 42% (2023-2026), driven by increased spending from major clients. SentinelOne's revenue grew 47% in fiscal 2024 but is projected to slow down to 32% growth in fiscal 2025.

Market Perception: SoundHound AI, despite its significant growth, faces challenges due to its high market cap of $8.05 billion, trading at 49 times its 2025 sales, and being unprofitable. This could lead to stock volatility if it fails to meet growth expectations. Meanwhile, Innodata's lower valuation at less than 6 times next year's sales and SentinelOne's more competitive valuation at 7 times next year's sales may present more stable investment opportunities.

Stocks: SOUN INOD S