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SoundHound AI, Inc. (SOUN) Dips More Than Broader Market: What You Should Know

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SoundHound AI, Inc. (SOUN - Free Report) ended the recent trading session at $4.55, demonstrating a -6.76% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.11%. Elsewhere, the Dow saw a downswing of 0.09%, while the tech-heavy Nasdaq depreciated by 1.88%.

Heading into today, shares of the company had lost 20.65% over the past month, lagging the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.

The upcoming earnings release of SoundHound AI, Inc. will be of great interest to investors. On that day, SoundHound AI, Inc. is projected to report earnings of -$0.07 per share, which would represent a year-over-year decline of 133.33%. Alongside, our most recent consensus estimate is anticipating revenue of $62.13 million, indicating a 47.74% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.19 per share and a revenue of $239.18 million, representing changes of -46.15% and +41.59%, respectively, from the prior year.

Investors should also pay attention to any latest changes in analyst estimates for SoundHound AI, Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SoundHound AI, Inc. presently features a Zacks Rank of #4 (Sell).

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 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.

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

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