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SoundHound AI, Inc. (SOUN) Moves 6.5% Higher: Will This Strength Last?

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SoundHound AI, Inc. (SOUN - Free Report) shares ended the last trading session 6.5% higher at $8.91. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 122.6% gain over the past four weeks.

SoundHound AI rides on a solid product portfolio to drive innovation in the restaurant and hospitality industry with its voice AI solutions, making significant strides in transforming the way businesses operate and engage with customers.

This company is expected to post quarterly loss of $0.09 per share in its upcoming report, which represents a year-over-year change of +25%. Revenues are expected to be $10.12 million, up 50.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For SoundHound AI, Inc., the consensus EPS estimate for the quarter has been revised 22.7% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SOUN going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

SoundHound AI, Inc. belongs to the Zacks Computers - IT Services industry. Another stock from the same industry, Evolv Technologies Holdings, Inc. (EVLV - Free Report) , closed the last trading session 1.7% lower at $3.55. Over the past month, EVLV has returned -33.3%.

For Evolv Technologies Holdings, Inc., the consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.14. This represents a change of -16.7% from what the company reported a year ago. Evolv Technologies Holdings, Inc. currently has a Zacks Rank of #3 (Hold).


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