SoundHound (SOUN) Stock Price

Financial Performance

SoundHound's revenue for the last quarter was $34.5M, reflecting a significant increase of 37.7% from the previous quarter and an impressive jump of almost 198% YoY. This strong growth in their top line is a positive signal. Their gross profit also rose to $14.4M, up by 18% QoQ and by nearly 128% YoY, indicating improving profitability.

However, their operating income showed a drastic drop at -$261.4M, down by -674.2% QoQ and by -981.8% YoY which raises concerns about the company's operational efficiency and cost management. The negative EBITDA ratio of -7.13 further highlights these issues.

Stock Price

The stock price has seen substantial growth recently with it being up by 25.8% over the past month and an impressive rise of over 280% YoY to its current level at $17.85.The RSI value is currently at an overbought level of 68.44 suggesting that the stock might be due for a correction in the near term.
The stock's price is well above its long-term (200-day) moving average ($12.33), indicating bullish sentiment among investors.

Alternative Data Signals

The company's web traffic seems to be on a downward trend with monthly visitors decreasing by -9%. On the other hand, mobile app downloads seem robust with around estimated daily downloads standing at around 103000 times per day.
Increase in job postings indicate expansion plans but employee business outlook seems rather pessimistic with only about approximately one-third reporting a positive outlook.
Social media following has seen a healthy increase across all platforms in the last 90 days, which can be indicative of growing brand awareness and engagement.

Conclusion

While SoundHound's revenue and gross profit growth are encouraging, their negative operating income and EBITDA ratio raise concerns about profitability. Despite recent stock price appreciation, the overbought RSI suggests potential for correction. Mixed signals from alternative data sources add to the uncertainty. Therefore, we remain neutral on SoundHound's stock at this time.

Note: This AI Stock Analysis is based on data as of October 04. Our members can refresh and get access to an up-to-date AI stock analysis.

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Based on a combination of financial analysis, technical indicators, and insights from alternative data, we predict that the stock price of SoundHound (SOUN), currently trading at $18.25, will... Sign up to access price prediction.