timothy sykes logo

Stock News

Is SOUN’s Stock Set to Bounce Back?

Jack KelloggAvatar
Written by Jack Kellogg Reviewed by Tim Sykes Fact-checked by Ellis Hobbs
Updated 4/23/2025, 11:39 am ET 4/23/2025, 11:39 am ET | 6 min 6 min read
Is SOUN’s Stock Set to Bounce Back? Thumbnail

SoundHound AI Inc. stocks have been trading up by 7.19 percent, driven by significant investor optimism.

  • DA Davidson offered a mixed review, decreasing SOUN’s price target from $13 to $10. However, it retained a Buy rating, showing faith in its future potential, even amid concerns regarding the US economy’s expected downturn.

  • In a promising move, SoundHound AI has ventured into a partnership with Tencent Intelligent Mobility. This collaboration sees its voice and conversational AI being integrated into Tencent’s cloud tools for automotive tech, expanding its industry footprint.

  • Conversely, a securities class action lawsuit besets the company, spotlighting alleged misleading communications and issues with financial reporting. These claims could cast a shadow over its financial practices and public trust.

Candlestick Chart

Live Update At 11:38:46 EST: On Wednesday, April 23, 2025 SoundHound AI Inc. stock [NASDAQ: SOUN] is trending up by 7.19%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Financial Snapshots and Recent Earnings Insights

As millionaire penny stock trader and teacher Tim Sykes says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This sentiment holds especially true in the trading world, where the path to success is often paved with challenges and setbacks. Traders must remain adaptable and view each error as an opportunity to refine their approaches and enhance their skills. By accepting the inherent volatility of the markets and staying committed to continuous learning, traders can navigate the unpredictable environment more effectively.

SoundHound AI’s recent earnings release painted a mixed picture. Revenue stood at approximately $84.69M, but profitability margins remained an area of concern. A look at the EBIT margin shows a negative 425%. Despite strong gross margins, which hover around 49%, their industry performance has been overshadowed by substantial losses. The company’s EBITDA is deep in negative territory, at approximately -$263.52M.

Their fiscal strength, as signified by a quick ratio of 3.3, indicates liquidity isn’t their most significant issue. However, the company’s steep negative return on assets (around -75.68%) hints at deep inefficiencies in asset utilization. The negative cash flow from operations, roughly -$33M, further showcases operational challenges, even with a noticeable cash position improvement to about $198.9M by the end of 2024.

Amid these challenges, SoundHound’s innovative efforts through partnerships and expanding platforms could usher in revenue growth, albeit at the cost of current profitability. Financial stakeholders might want to be encouraged by its partnerships but cautious about pending litigation and profitability volatility.

News-Driven Momentum and Market Speculations

The announcement of the company’s market leadership with Autonomics has the potential to enhance investor confidence. Given the platform’s critical acclaim, it’s not hard to picture greater market traction. Stakeholders observe that such news can be a catalyst for stock price volatility, possibly stabilizing or boosting shares depending on broader operational efficiencies.

In contrast, DA Davidson’s revised price target injects a dose of reality. This adjustment reflects a tempered market outlook while reinforcing their belief in its strategic trajectory. Investors are prompted to weigh potential growth against underlying economic impasses.

The partnership with Tencent represents promising diversification for SoundHound. Evolving avenues in AI for vehicles may provide a promising avenue for long-term growth. Collectively, these developments lay the groundwork for potentially transformative growth if operational hiccups are ironed out, suggesting intriguing prospects for tech-forward investors with high-risk appetites.

The lawsuit’s potential implications also loom large. If unresolved effectively, it might erode investor confidence, yet a favorable resolution could bolster transparency and stock vitality in the long run. Information transparency is key, as transparency ensures trust, vital for any tech company’s market valuation integrity.

More Breaking News

SOUN’s Potential Ups and Downs: Interpretations and Projections

Navigating through these news trails, SoundHound appears at a crossroad. On one path lies innovation and partnerships, suggesting ground for optimism. On the other resides pending legal battles and negative profitability metrics, indicating potential pitfalls.

In a world of endless data streams and digital transformation, SoundHound’s strategic moves seem to leverage market opportunities expectedly. Its substantive tie-up with Tencent could open doors to lucrative automotive tech markets, provided operational synergies follow.

If you’re observing SoundHound’s stock dynamics, anticipate a dual storm of excitement and caution. The company is a classic tech survivor story—a firm adapting in transformative ways yet battling its demons. Ultimately, this stock may reflect broader market trends but hinges keenly on internal managerial efficacy and external technological advancement adoption. As millionaire penny stock trader and teacher Tim Sykes, says, “Embrace the journey, the ups and downs; each mistake is a lesson to improve your strategy.” This perspective is critical as traders navigate the highs and lows inherent in tech markets.

As you consider SoundHound’s future, countless variables will paint this narrative—a blend of decisive action and unpredictable market forces. In the end, whether a calculated ride or a rocky road, traders and market watchers will keep a keen eye on how this story unfolds.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

Dive deeper into the world of trading with Timothy Sykes, renowned for his expertise in penny stocks. Explore his top picks and discover the strategies that have propelled him to success with these articles:

Once you’ve got some stocks on watch, elevate your trading game with StocksToTrade the ultimate platform for traders. With specialized tools for swing and day trading, StocksToTrade will guide you through the market’s twists and turns.
Dig into StocksToTrade’s watchlists here:

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply
Author card Timothy Sykes picture

Jack Kellogg

He teaches webinars on Tim Sykes’ Trading Challenge He became Tim’s youngest millionaire student in 2020. Now he’s second on the Trading Challenge leaderboard with $12.9 million in career earnings. He’s a master of the 7-Step Pennystocking Framework. Jack is one of a rare breed of traders to profitably trade the entire penny stock framework.
Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”