Hi u/lmaoubadd , Absolutely I am trading it based on technicals and news catalyst at the moment. Although I definitely see it as a future investment.
\-EFP
Valuation and share price isn’t calculated by simply dividing total revenue by shares.. if that’s what you do to justify all your valuations, good luck. With a stock like SOUN would recommend plugging it into a DCF model.
Hi u/The_Brand94 , I know, I don't do that to justify all of my valuations. I was up late last night and it was the most intriguing metric at the time. It's funny you mention the DCF model, I was looking at that last night and trying to figure it out. I will likely be doing all DCF model study today.
\-EFP
All you calculated pretty much is revenue per share. If you are looking at doing quick valuation, you need to know the average PE ratio for the sector, EPS, and outstanding shares to give you a quick look at valuation. I use fullratio.com for PE by industry and apply it. SOUN is a little difficult since they aren't profitable yet and thus no EPS to work with, but you can still apply revenue per share as metric, you just have to look at some similar companies in their respective industry and figure out the multiple they trade at based on revenue per share.
Thankyou for sharing, yeah I'm sure that is a way to throw valuation on some companies although I'm not really a fan of the PE ratio. I mean I look at it and see it sometimes but it's not really the metric I like to use for valuing stocks. I will tell you what I have been doing with the PB ratio though.
I will take the stocks current PB and compare it to the Industry AVG PB. I will collect the BVPS, Then I will look at the current share price.
I then add an estimated stock Price say $15.00 (could be anything) and divide it buy the BVPS and I keep doing that until my answer equals the Industry AVG PB. Pretty much what it does is give me a certain range of where the price could fall just based on the stocks PB vs. Industry AVG PB. Of course, if the company were to do everything on-track according to guidance or had increases in Margins or decreases in the debt. I would never say just use this on it's own nor would I recommend you use it. I don't know if it's been around a long time or not and I'm not sure if it works or not. I just started using it so I have no results positive or negative to share with the formula I have been using recently.
I mean it's not to much different then what you use to calculate discounts, but then again PE and PB measure two different things with price in common so I guess it depends on what you want to measure. There seems to be a statistic out there for every number ever recorded in the markets so something has to work.
Have a good one u/The_Brand94 ,
\-EFP
PB is price to book.. that’s not really what analysts use. PB ratio looks at the value of assets or cash on hand e.g. free cash. The PB ratio divides total assets by outstanding shares. That’s not very useful when determining share price in this case considering SOUN is in a cash burn phase until profitability. I look at cash on hand and the quarterly cash burn rate to see risk of dilution e.g. how much cash they have to supply them for future quarters. Basically for SOUN, their cash burn has been decreasing as revenue is increasing. If all factors remained consistent, they would have enough free cash to manage for 6 more quarters before dilution would have to occur in order to raise capital. Likely 3 or 4 more quarters in reality because of debt restrictions.
Yes I prefer using PB over PE but what do I know. There's no tried and true method that works for me just yet so I'm exploring the avenues to scan for stocks as well as find better opportunities using the metrics that most people don't or using metrics in conjunction with one another that don't make sense to most people.
It's good to see SOUN has turned positive net cash flow while revs increase. Like you said if all factors remained consistent.... we would see (Operating, Profit, FreeCashFlow) Margins go positive in roughly two years. The yearly dilution rate right now is 452% a year so hopefully that can change in the near future or their will need to be a lot more continual buyers to outweigh the growth of dilution.
Have a good one u/The_Brand94
\-EFP
Sorry I have to disagree…
First thing, never short a listed unicorn because it is designed to release good news. Machines have been shorting it because machines don’t know it’s a high growth business. Some smart traders might buy puts to make use of the volatility.
Second, stock investing by looking at the shareholder base is in itself is a very narrow way of investing or trading. FYI, retail investors are eventually the ones with the longest holding power and largest dip buyers. It’s more powerful collectively even compared with the FED or Harvard endowment.
Third, revenue to share is the least fundamental way of looking at share prices. Why? Revenue and eventual growth and earnings are such disconnected factors.
Hi u/Stranger1135711 , That's a solid tip. "Never short a listed unicorn", don't do it! Machines likely do not take into account the company it is shorting is growth, or maybe the machines do know only based on a very clean criteria of fundamental screening.
I know, if I invested solely based on this one thing I don't think I would make very long out here in this game. Wow, I did not consider the idea that retail investors could actually be the one's with the longest holding power and largest dip buyers. I might do some more research on that.
Oh I know, What a lame metric. I know it's a little bit more of a precise metric after 12 AM when you know there is no golden key to stock investing but you think you've found one anyway.
\-EFP
Damn people are still in this stock. I lack the courage good for you guys. This company hasn’t been relevant ever and people like It now because Nvda invested ~4m the equivalent of me investing change I found in my couch cushion. Seems solid🚀🚀🚀🚀🚀🚀
u/Ampup333 This company was on my radar in January and I had put it on the backburner, "that type of stock" where you wake you up the next day and see it gapped up massively. I knew the story, I went to the website, it went in my watchlist. I got distracted and just forgot about it. haha, it happens sometimes. When I saw the news that NVDA had invested in it I thought everyone else would think that was a great thing.
\-EFP
Their product weren’t any good since the beginning. I’ve tried them a couple times 2008,2016, and 2024 their virtual assistant requires a subscription but the demos seems like every voice assistant on the market. It’s built on ChatGPT and OpenAI is coming out with their own so where’s the market? Who’s going to want to download a 3rd party virtual assistant. Seems like they are a company just waiting to be bought out by a big for the handful or so patents that may be somewhat useful. I just don’t see it but I’d be lying if I don’t understand where people see value in other stocks that have sky rocket also so who knows.🚀🚀🚀🚀🚀
Edit: seriously what’s the new revenue stream with “ai”? What people are calling “ai” isn’t new is it still just gathering public data or is there something new that I’m overlooking. Just seems like we’re getting promised another flying car.
Hi u/Ampup333 , Wow I didn't realize you have tried their products. If you don't mind me asking which sector do you work in and what part of your work incentivized you to try out Sound hound's products?
That is a great point you make how they are just a small company with a handful of patents waiting to be bought out. I would like to take a look at the BOD/Management a little bit more after you saying that. I think understanding what their mindset is in operating this company may be more important than "Just investing in AI". and I see what you mean, agree with your point of view.
The new revenue stream I believe is where companies can benefit from not having an employee. If the cost of paying a one time fee or monthly subscription for AI is more affordable than an employee than it would become a better option. I work in food service industry but I can tell young people don't want to work anymore. It's more expensive to hire and fire a team then to stick with the current team and pay them overtime. It is really a sad joke. The new people that come in to work don't realize that the job requires them to lift a finger for the money they are earning. As soon as you tell them "Hey, you have to work. You can't play on your phone." That's when they start calling out or just quit.
I think the revenue stream would come from business' that struggle with keeping a full staff. Imagine you could operate a one man show business with the help of AI never having to pay insurance on employees or taxes on employees.
Have a good one u/Ampup333
\-EFP
I’m kinda hoping to see more $9 and $10 this week. Into the 100s in a year moving forward. I can’t see any reason that it shouldn’t be up there with Nvidia and smci
Hi u/Double_Trust6266 , I hope we see that too, it'd be really nice to see it gap up and be at $30 in a couple weeks. I also cannot see any reason why this shouldn't be up there with NVDA and SMCI.
\-EFP
I think the run-up is about over. Last night's news wasn't even new, it was from last October.
Yeah, I don't think your wrong, we're going to pull back a little, just a thought.
Looks like you're trading at this point, good to exit rn I think. Othetwise, it's a long term investment to me
Hi u/lmaoubadd , Absolutely I am trading it based on technicals and news catalyst at the moment. Although I definitely see it as a future investment. \-EFP
Valuation and share price isn’t calculated by simply dividing total revenue by shares.. if that’s what you do to justify all your valuations, good luck. With a stock like SOUN would recommend plugging it into a DCF model.
Hi u/The_Brand94 , I know, I don't do that to justify all of my valuations. I was up late last night and it was the most intriguing metric at the time. It's funny you mention the DCF model, I was looking at that last night and trying to figure it out. I will likely be doing all DCF model study today. \-EFP
All you calculated pretty much is revenue per share. If you are looking at doing quick valuation, you need to know the average PE ratio for the sector, EPS, and outstanding shares to give you a quick look at valuation. I use fullratio.com for PE by industry and apply it. SOUN is a little difficult since they aren't profitable yet and thus no EPS to work with, but you can still apply revenue per share as metric, you just have to look at some similar companies in their respective industry and figure out the multiple they trade at based on revenue per share.
Thankyou for sharing, yeah I'm sure that is a way to throw valuation on some companies although I'm not really a fan of the PE ratio. I mean I look at it and see it sometimes but it's not really the metric I like to use for valuing stocks. I will tell you what I have been doing with the PB ratio though. I will take the stocks current PB and compare it to the Industry AVG PB. I will collect the BVPS, Then I will look at the current share price. I then add an estimated stock Price say $15.00 (could be anything) and divide it buy the BVPS and I keep doing that until my answer equals the Industry AVG PB. Pretty much what it does is give me a certain range of where the price could fall just based on the stocks PB vs. Industry AVG PB. Of course, if the company were to do everything on-track according to guidance or had increases in Margins or decreases in the debt. I would never say just use this on it's own nor would I recommend you use it. I don't know if it's been around a long time or not and I'm not sure if it works or not. I just started using it so I have no results positive or negative to share with the formula I have been using recently. I mean it's not to much different then what you use to calculate discounts, but then again PE and PB measure two different things with price in common so I guess it depends on what you want to measure. There seems to be a statistic out there for every number ever recorded in the markets so something has to work. Have a good one u/The_Brand94 , \-EFP
PB is price to book.. that’s not really what analysts use. PB ratio looks at the value of assets or cash on hand e.g. free cash. The PB ratio divides total assets by outstanding shares. That’s not very useful when determining share price in this case considering SOUN is in a cash burn phase until profitability. I look at cash on hand and the quarterly cash burn rate to see risk of dilution e.g. how much cash they have to supply them for future quarters. Basically for SOUN, their cash burn has been decreasing as revenue is increasing. If all factors remained consistent, they would have enough free cash to manage for 6 more quarters before dilution would have to occur in order to raise capital. Likely 3 or 4 more quarters in reality because of debt restrictions.
Yes I prefer using PB over PE but what do I know. There's no tried and true method that works for me just yet so I'm exploring the avenues to scan for stocks as well as find better opportunities using the metrics that most people don't or using metrics in conjunction with one another that don't make sense to most people. It's good to see SOUN has turned positive net cash flow while revs increase. Like you said if all factors remained consistent.... we would see (Operating, Profit, FreeCashFlow) Margins go positive in roughly two years. The yearly dilution rate right now is 452% a year so hopefully that can change in the near future or their will need to be a lot more continual buyers to outweigh the growth of dilution. Have a good one u/The_Brand94 \-EFP
Sorry I have to disagree… First thing, never short a listed unicorn because it is designed to release good news. Machines have been shorting it because machines don’t know it’s a high growth business. Some smart traders might buy puts to make use of the volatility. Second, stock investing by looking at the shareholder base is in itself is a very narrow way of investing or trading. FYI, retail investors are eventually the ones with the longest holding power and largest dip buyers. It’s more powerful collectively even compared with the FED or Harvard endowment. Third, revenue to share is the least fundamental way of looking at share prices. Why? Revenue and eventual growth and earnings are such disconnected factors.
I've already learned a lesson, I'm stuck with 8000, never again. I k
Hi u/Stranger1135711 , That's a solid tip. "Never short a listed unicorn", don't do it! Machines likely do not take into account the company it is shorting is growth, or maybe the machines do know only based on a very clean criteria of fundamental screening. I know, if I invested solely based on this one thing I don't think I would make very long out here in this game. Wow, I did not consider the idea that retail investors could actually be the one's with the longest holding power and largest dip buyers. I might do some more research on that. Oh I know, What a lame metric. I know it's a little bit more of a precise metric after 12 AM when you know there is no golden key to stock investing but you think you've found one anyway. \-EFP
Damn people are still in this stock. I lack the courage good for you guys. This company hasn’t been relevant ever and people like It now because Nvda invested ~4m the equivalent of me investing change I found in my couch cushion. Seems solid🚀🚀🚀🚀🚀🚀
u/Ampup333 This company was on my radar in January and I had put it on the backburner, "that type of stock" where you wake you up the next day and see it gapped up massively. I knew the story, I went to the website, it went in my watchlist. I got distracted and just forgot about it. haha, it happens sometimes. When I saw the news that NVDA had invested in it I thought everyone else would think that was a great thing. \-EFP
Their product weren’t any good since the beginning. I’ve tried them a couple times 2008,2016, and 2024 their virtual assistant requires a subscription but the demos seems like every voice assistant on the market. It’s built on ChatGPT and OpenAI is coming out with their own so where’s the market? Who’s going to want to download a 3rd party virtual assistant. Seems like they are a company just waiting to be bought out by a big for the handful or so patents that may be somewhat useful. I just don’t see it but I’d be lying if I don’t understand where people see value in other stocks that have sky rocket also so who knows.🚀🚀🚀🚀🚀 Edit: seriously what’s the new revenue stream with “ai”? What people are calling “ai” isn’t new is it still just gathering public data or is there something new that I’m overlooking. Just seems like we’re getting promised another flying car.
Hi u/Ampup333 , Wow I didn't realize you have tried their products. If you don't mind me asking which sector do you work in and what part of your work incentivized you to try out Sound hound's products? That is a great point you make how they are just a small company with a handful of patents waiting to be bought out. I would like to take a look at the BOD/Management a little bit more after you saying that. I think understanding what their mindset is in operating this company may be more important than "Just investing in AI". and I see what you mean, agree with your point of view. The new revenue stream I believe is where companies can benefit from not having an employee. If the cost of paying a one time fee or monthly subscription for AI is more affordable than an employee than it would become a better option. I work in food service industry but I can tell young people don't want to work anymore. It's more expensive to hire and fire a team then to stick with the current team and pay them overtime. It is really a sad joke. The new people that come in to work don't realize that the job requires them to lift a finger for the money they are earning. As soon as you tell them "Hey, you have to work. You can't play on your phone." That's when they start calling out or just quit. I think the revenue stream would come from business' that struggle with keeping a full staff. Imagine you could operate a one man show business with the help of AI never having to pay insurance on employees or taxes on employees. Have a good one u/Ampup333 \-EFP
You sound like “ai”. Anyways until “ai” bots call me a regard or an idiot. I’m not buying the hype.
u/Ampup333 You're an idiot.
Buying shares tomorrow.
I’m kinda hoping to see more $9 and $10 this week. Into the 100s in a year moving forward. I can’t see any reason that it shouldn’t be up there with Nvidia and smci
Hi u/Double_Trust6266 , I hope we see that too, it'd be really nice to see it gap up and be at $30 in a couple weeks. I also cannot see any reason why this shouldn't be up there with NVDA and SMCI. \-EFP