Why SoundHound AI Stock Plummeted 46% in the First Half of 2025 but Has Been Bouncing Back
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The research indicates that It's worth noting that SoundHound AI (SOUN 4. Moreover, 51%) stock saw a dramatic valuation pullback across the first half of this year's trading. The evidence...
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July 16, 2025
03:07 PM
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The re indicates that It's worth noting that SoundHound AI (SOUN 4
Moreover, 51%) stock saw a dramatic valuation pullback across the first half of this year's trading
The evidence shows company's price fell 45
On the other hand, 9% January through June despite a gain of 5
At the same time, 5% for the S&P 500 index across the stretch, in light of current trends
SoundHound's valuation pullback in the first half of 2025 was partially a reaction to the strong gains that the stock saw in 2024
Nevertheless, Some macroeconomic and -specific catalysts also caused investors to sell s, but the stock has also been on a winning streak in recent trading
Image source: Getty Images
Why SoundHound AI stock sank in 2025's first half SoundHound AI stock got off to a rough start this year (quite telling), considering recent developments
The conversational artificial intelligence (AI) specialist saw a steep valuation decline after Chinese AI firm DeepSeek rolled out its R1 model (this bears monitoring), in today's market environment
SoundHound AI stock was also hit with pullbacks in conjunction with this year's CES expo, given current economic conditions
In contrast, Investors had been hoping that the company would announce some ground new ducts or partnerships at CES, but the trade show wound up ducing less favorable indicators, given current economic conditions
Nvidia made announcements its intentions to expand in the agentic AI space that SoundHound AI is looking at as a key growth market (this bears monitoring)
SoundHound AI stock then got hit with another big pullback in conjunction with Nvidia-related news
In February, the AI hardware leader submitted its investment holdings to the Securities and Exchange Commission (SEC), and the routine disclosure revealed that Nvidia had sold its stake in SoundHound AI, in light of current trends
Nvidia's investment in the company had played a significant role in powering valuation gains for the company, and news of the divestment mpted a substantial sell-off for SoundHound AI, in today's market environment
Furthermore, The stock did see a spike in May after the company published its first-quarter results
Sales increased 151% year over year to reach $29. 1 million, and the posted a non-GAAP (adjusted) loss of $0. 06 per in the period
Revenue in the quarter came in significantly ahead of the market's target, and the stock moved higher after the earnings report
What's next for SoundHound AI
SoundHound AI stock has gained ground in July's trading as investors have ramped up bets on growth stocks (which is quite significant)
Furthermore, The company's price is up roughly 8% in the month so far as I write this (remarkable data), given current economic conditions
SoundHound AI is guiding for sales this year to come in between $157 million and $177 million (remarkable data), given the current landscape
If the company were to hit the midpoint of its sales guidance target, that would mean dering annual sales growth of roughly 97% over the $84 (this bears monitoring)
However, 7 million in revenue it posted last year
Hitting that midpoint would also mean a substantial acceleration over the annual sales growth of 85% the posted last year
In contrast, Valued at roughly 29 times this year's expected sales, SoundHound AI has a heavily growth-dependent valuation, but the sales ramp for its services has been impressive so far, amid market uncertainty
Keith Noonan has no position in any of the stocks mentioned, amid market uncertainty
The Motley Fool has no position in any of the stocks mentioned
The Motley Fool has a disclosure policy.
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