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SoundHound Rallies on Nvidia-Fueled Bounce as DA Davidson Reaffirms Buy

Volatility persists given lumpy growth alongside mounting losses.

Overview

  • Shares rose as much as 12% on Nov. 20 following Nvidia’s strong results before giving back much of the gain, leaving the stock down about 36% over a month and roughly 50% below its peak.
  • DA Davidson reiterated a Buy rating and $17 price target after investor meetings with CFO Nitesh Sharan, citing clearer strategy around the Interactions acquisition and voice commerce economics.
  • SoundHound posted about $42 million in Q3 revenue, up 68% year over year but down sequentially from $42.7 million, a marked slowdown from 217% growth in Q2.
  • Management recently raised full-year 2025 revenue guidance to $165 million to $180 million.
  • Financial pressures include a $109 million GAAP loss in Q3 with $269 million in cash, reports of exclusive insider selling over the past year, and a valuation near 55 times sales.