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SoundHound AI, Inc. (SOUN) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with SoundHound AI, Inc. (SOUN - Free Report) standing at $5.81, reflecting a -0.85% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a loss of 0.28% for the day. Meanwhile, the Dow experienced a drop of 0.08%, and the technology-dominated Nasdaq saw a decrease of 0.42%.

The company's stock has climbed by 1.91% in the past month, falling short of the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.

The upcoming earnings release of SoundHound AI, Inc. will be of great interest to investors. The company is predicted to post an EPS of -$0.09, indicating a 25% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $10.12 million, up 50.86% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.29 per share and a revenue of $69.75 million, indicating changes of +23.68% and +52.04%, respectively, from the former year.

Investors should also take note of any recent adjustments to analyst estimates for SoundHound AI, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 8.41% downward. As of now, SoundHound AI, Inc. holds 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 68, placing it within the top 27% of over 250 industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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