SOUNDHOUND AI INC Reports Low Ratings from Guru Strategies

SOUNDHOUND AI INC receives a rating of 45% from the Small-Cap Growth Investor model. While it scores well on some fundamentals, it fails on key metrics like profit margin and cash flow, indicating potential challenges ahead for investors.

Date: 10-03-2025

AI Rating: 4

Investor Analysis of SOUNDHOUND AI INC
The report indicates that SOUNDHOUND AI INC (SOUN) has received a rating of 45% based on the Small-Cap Growth Investor strategy. This strategy evaluates stocks based on solid fundamentals and price performance.

Earnings Per Share (EPS)
The report does not mention EPS, which makes it difficult to evaluate the company's profitability on a per-share basis based on this analysis.

Revenue Growth
SOUNDHOUND failed to show revenue growth compared to the same period last year, which is a significant concern for investors looking for companies that can increase their sales over time. This failure can lead to negative sentiment regarding future stock performance.

Net Income
Net income details are not provided in the report, limiting insights into the overall profitability of the company.

Profit Margins
Profit margin is noted as a failure, indicating that the company is struggling to convert sales into actual profit. A low or negative profit margin can adversely affect stock prices as it indicates financial inefficiency.

Free Cash Flow (FCF)
The report does not provide information regarding free cash flow, which is crucial for understanding the liquidity and financial flexibility of the company.

Return on Equity (ROE)
The analysis lacks specific ROE data, preventing an evaluation of how effectively the company generates profits from its equity investments.

In summary, SOUNDHOUND AI INC has some positive aspects, such as passing criteria like cash and cash equivalents and accounts receivable to sales. However, the failures in profit margin, revenue growth, and other key metrics suggest significant challenges that could lead to downward pressure on stock prices in the near future. Investors should be cautious as the overall evaluation draws attention to potential weaknesses within the company's operations.

Stocks: SOUN