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Motley Fool Warns on SoundHound AI Stock as Valuation Soars

The advisory flags a steep sales multiple against ongoing losses despite rapid growth.

Overview

  • SoundHound AI shares are up about 45% since their August 2022 SPAC debut, trailing the S&P 500’s roughly 70% total return over the same span.
  • Investors who bought in December 2022 are sitting on gains of roughly 1,000%, highlighting the stock’s volatility and timing sensitivity.
  • With a market value near $4.7 billion and projected 2025 revenue of about $173 million, the forward price-to-sales ratio is approximately 27.
  • The company remains unprofitable, though it cut losses by roughly half over the first nine months of 2025.
  • SoundHound markets voice-based conversational AI with agentic features and is working with an undisclosed sports car maker on an in-vehicle assistant “personality.”