SoundHound (SOUN) Explodes 13% on Massive Revenue Surge and AI Bookings Boom

SOUN Stock Jumps 13% on Explosive Revenue Growth and AI Catalysts

Massive Revenue Surge Pushes NASDAQ:SOUN Above $13

SoundHound AI Inc. (NASDAQ:SOUN) surged over 13% today, reaching an intraday high of $13.40 before settling near $12.83, with volume surpassing 82 million shares, more than double its average daily turnover. This rally follows a blowout quarter, where revenue jumped 151% YoY to $29.1 million, sharply beating expectations and igniting strong investor momentum.

Guidance Near Doubles: $157–177 Million Full-Year Revenue Target

For fiscal 2025, SoundHound raised guidance to $157–177 million, nearly doubling from $102 million last year. This underscores a continued acceleration in AI adoption across its core segments—automotive, enterprise voice solutions, and hospitality. Gross margins remain in the mid-50% range, and the firm aims for positive adjusted EBITDA by year-end, a critical inflection point that could attract institutional money.

$1.2 Billion Bookings Backlog Signals Future Strength

A key highlight is SoundHound’s $1.2 billion enterprise bookings backlog, which gives a long-term growth runway. Its voice AI platform is embedded in major auto brands including Hyundai, Kia, Mercedes-Benz, and Stellantis, and it recently inked a high-profile deal with Tencent Intelligent Mobility. The company also announced a new in-vehicle voice commerce system and integration with Nvidia Drive AGX.

Insider Selling Undermines Confidence Despite Strong Fundamentals

Despite these growth figures, insider transactions remain a red flag. Over the past 30 days, insiders sold 243,000 shares at an average price of $10, totaling approximately $6–7 million. In May, CEO Keyvan Mohajer liquidated a sizable position worth $27 million under a 10b5‑1 plan. No insider buys were reported over the last 12 months, suggesting profit-taking as the stock climbs.

Cash Reserves and Zero Debt Offer Balance Sheet Strength

SOUN holds $245 million in cash, carries no long-term debt, and reports total liabilities under $190 million. This financial posture ensures runway for expansion, M&A, and ongoing AI development, especially after the $85 million acquisition of Amelia, which expands its presence in restaurant ordering and enterprise automation.

Valuation Stretched: Trading at 35× Sales

At current levels, NASDAQ:SOUN trades at ~35× trailing sales and ~22× forward 2025 sales—significantly above peers like C3.ai (8×) and UiPath (7×). While this premium reflects optimism around AI monetization, it also leaves little margin for missteps, making the stock vulnerable to future volatility.

Wall Street Turns Mixed as Targets Reset

Analyst sentiment has cooled. While Piper Sandler maintains an "Overweight" rating with a $12 target, Wedbush cut from $22 to $15, and DA Davidson trimmed from $13 to $10. HC Wainwright lowered its view from $26 to $18. The MarketBeat consensus target sits at $10.50, below current market price, suggesting the recent run may have overshot fundamentals.

Verdict: Hold – Momentum Strong, But Risks Rising

Given the sharp rally, revenue acceleration, and healthy balance sheet, SOUN presents a compelling growth narrative. However, aggressive insider selling, a premium valuation, and a stretched technical chart suggest caution. Traders should hold for now and watch for earnings in early August. A beat could justify upside to $15, while any margin contraction or slowdown may push the stock back toward the $10–11 support zone.

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