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SoundHound AI, Inc. (SOUN) Stock Falls Amid Market Uptick: What Investors Need to Know

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SoundHound AI, Inc. (SOUN - Free Report) closed the latest trading day at $5.25, indicating a -1.13% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.47%. Elsewhere, the Dow gained 0.79%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the company had gained 10.63% over the past month, outpacing the Computer and Technology sector's gain of 3.88% and the S&P 500's gain of 3.48% in that time.

The upcoming earnings release of SoundHound AI, Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be -$0.08, reflecting a 11.11% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $23.68 million, up 78.47% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.36 per share and a revenue of $82.59 million, indicating changes of +5.26% and +80.05%, respectively, from the former year.

Investors might also notice recent changes to analyst estimates for SoundHound AI, Inc. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. SoundHound AI, Inc. is currently sporting a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 46, placing it within the top 19% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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