Is SoundHound A good Investment?

Is $SOUN finding new legs with Perplexity and Nvidia partnership and new Generative AI capabilities?

Hello Everyone,

As an emerging tech analyst with over 10 Newsletters covering various aspects of emerging and exponential technology, I’m always watching the actual performance of stocks and firms on the actual markets, since that’s a huge part of this all.

You may not know this, but I’m also a trader of micro cap stocks and I especially covet discovering tech and healthcare startups before they develop into bigger companies. I’ve been tracking SoundHound for a long time, ticker: SOUN 0.00%↑ (SOUN).

Now I am not 100% sure if SoundHound is a company you should be backing, but for a name to trade, it’s a fairly interesting name. I know the company well, I once had applied for a content related job with them, they had someone on their team who thought I had some marketing chops.

What is special about this company? In an era where today OpenAI will likely announce its own HER (2013) like Voice assistant today (literally today), I have to wonder.

SoundHound is a player in voice artificial intelligence. In recent times there has been some interest in them since they are an enduring AI SPAC with now partnerships with both Nvidia and Perplexity. That is itself rather unusual and they aren’t profitable.

About a month ago the partnership with Nvidia was announced:

We are in a fascinating time when even GM will use uProtocol in its new Ultifi software platform that will debut in the 2024 Chevrolet Silverado EV, Blazer EV, and Equinox EV, which will not feature Apple CarPlay or Android Auto.

SoundHound also have notable partnership with food ordering for instance with Chicken Shack. They don’t tend to make a ton of money with their Restaurant Phone Ordering software. Still, they just completed Earnings so we have a bit more data on their revenue progress.

SoundHound AI, Inc. is a voice AI and speech recognition company founded in 2005. They have had over 20 years to get profitable! When the founder is still the CEO, is not usually a good sign. They were founded by Keyvan Mohajer, an Iranian-Canadian computer scientist who is also the company's CEO.

Here we are not talking about a major AI company, the market cap of SoundHound is generously positioned at $1.63 Billion at the time of writing. This after being 144% up so far YTD in 2024 along with the general AI bubble like momentum for some names that aren’t exactly bringing in enough revenue to deserve those valuations.

For the record, SPACs are usually very poor quality companies that most always go bust. SoundHound went public via a SPAC in 2022. In an age of Generative AI, shoudln’t a Voice-AI legacy startup go extinct? You’d think right? But there may be more going on here.