SOUNDHOUND AI INC Rates Low Amid Guru Strategies Review

Investors take note: SOUNDHOUND AI INC received a score of 45% under the Small-Cap Growth Investor model, indicating weak fundamentals. This may lead to stock price volatility as the company fails to meet important criteria.

Date: 22-02-2025

AI Rating: 4

Company Overview

SOUNDHOUND AI INC has been evaluated under the Small-Cap Growth Investor model and received a score of 45%. This is notably below the threshold that typically indicates investor interest, which could put downward pressure on its stock price.

Analysis of Key Metrics

Profit Margins: The stock has failed to demonstrate profitable margins, which is a significant concern for investors, as it directly impacts net income and overall profitability. Failing in this area suggests operational inefficiencies that may deter investor confidence.

Sales and EPS Growth: Performance in comparing sales and EPS growth to the same period last year is another failing point. This raises questions about the company's revenue growth and ability to generate earnings effectively, which can lead to eroded investor expectations and stock price adjustments.

Cash Flow from Operations: With a failure in cash flow from operations, there is skepticism regarding the sustainability of the company's business model and its ability to finance operations without additional debt or capital raises. This can indicate liquidity issues, further affecting stock valuations negatively.

Long-Term Debt/Equity Ratio: The company has also failed in this aspect, which suggests high reliance on debt financing. A lower equity cushion increases financial risk.

Other metrics such as insider holdings and R&D as a percentage of sales are also marked as failures, reflecting poor confidence from insiders and potentially inadequate investment in growth initiatives.

While SOUNDHOUND AI INC has passed some tests, such as cash and cash equivalents, and accounted receivables to sales, these alone are insufficient to paint a positive outlook for the stock.

Stocks: SOUN