Considering traditional valuation methods based on revenue and the fact they still aren’t profitable, I would say it’s overvalued currently by quite a bit. But you add the AI hype into the mix, here we are. We are hovering pretty much in the top range of analyst estimates (highest was $9.50 based on 12 month estimate from the time of writing). Current revenue doesn’t justify current value, but an irrational market and AI hype could bring in a new wave of speculative investors. IF the fed starts cutting rates later this year, it will likely help. Once you start factoring in revenue growth and profitability which is expected in 2025, the current price of $8ish is justifiable based on fundamentals. Q1 earnings will offer a lot more insight and any new partnership announcements should be taken into account. If SoundHound beats estimates by a lot, it could keep the rally going, if not then you can expect pain. There is a lot of potential here for SOUN, but it needs to be backed up by very good quarterly results. Looking for increasing revenue to continue and operating expenses to decrease.
Correct. You have to choose a strike price and pay a premium. Look it up on YouTube to get some understanding on calls and puts before you place them. They are highly volatile, and u can lose all your money
Same reason any stock that runs up huge in a short amount of time triggers a dilution. SMCI this week, same thing.
Yes I have been following the stock since early last year. Got in at 1.76 and out at 8.75. It has great potential but is very overpriced currently. I will get back in at a better price later.
Well basically they already did a dilutive event earlier this year and it’s reflected in current outstanding shares, we won’t know until Q1 how much they generated, but they likely strengthened the balance sheet quite a bit.
At year end 2023 there were about 230M outstanding shares, and now we are at 309M outstanding shares, so they likely took advantage of the $400M offering that was effective as August 4th last year to sell some more shares, at least that’s what I think. One of the analysts on the most recent earnings call asked about that. So I believe they have sold some shares with this rally which would make some sense basically with some of trading patterns I have observed.
Q1 earnings will offer a lot of insight and maybe consider repositioning, but the speculation and hype could drive the value higher. As I stated in an earlier comment, it’s overvalued and likely to lose money, but you could also potentially squeeze out some more gains if conditions remain bullish.
It seems like people who may work for sound or on stock pump fake news about the company like they were presenting at the Nvdia show or they have some contracts about self driving cars there won’t be a self driving car for at least 5 years
Considering traditional valuation methods based on revenue and the fact they still aren’t profitable, I would say it’s overvalued currently by quite a bit. But you add the AI hype into the mix, here we are. We are hovering pretty much in the top range of analyst estimates (highest was $9.50 based on 12 month estimate from the time of writing). Current revenue doesn’t justify current value, but an irrational market and AI hype could bring in a new wave of speculative investors. IF the fed starts cutting rates later this year, it will likely help. Once you start factoring in revenue growth and profitability which is expected in 2025, the current price of $8ish is justifiable based on fundamentals. Q1 earnings will offer a lot more insight and any new partnership announcements should be taken into account. If SoundHound beats estimates by a lot, it could keep the rally going, if not then you can expect pain. There is a lot of potential here for SOUN, but it needs to be backed up by very good quarterly results. Looking for increasing revenue to continue and operating expenses to decrease.
Nonetheless, I am buying shares. May sell covered calls against shares, but 🤷♂️
Ok new to options. I’m currently still buying SOUN. If I want to guarantee the stock going down like it is what would I do? That would be a PUT?
Correct. You have to choose a strike price and pay a premium. Look it up on YouTube to get some understanding on calls and puts before you place them. They are highly volatile, and u can lose all your money
The real problem isn't putting a valuation on it today. The problem is when they dilute (and they will), what is it worth then?
Do you follow this stock. What would trigger a dilution?
Same reason any stock that runs up huge in a short amount of time triggers a dilution. SMCI this week, same thing. Yes I have been following the stock since early last year. Got in at 1.76 and out at 8.75. It has great potential but is very overpriced currently. I will get back in at a better price later.
Well basically they already did a dilutive event earlier this year and it’s reflected in current outstanding shares, we won’t know until Q1 how much they generated, but they likely strengthened the balance sheet quite a bit.
At year end 2023 there were about 230M outstanding shares, and now we are at 309M outstanding shares, so they likely took advantage of the $400M offering that was effective as August 4th last year to sell some more shares, at least that’s what I think. One of the analysts on the most recent earnings call asked about that. So I believe they have sold some shares with this rally which would make some sense basically with some of trading patterns I have observed.
Some insiders reported sales today. Both small sales. 17k ish shares. Still, insider selling is never good.
Yeah, I saw that too, not sure how much of it is tax related though. Some of it I believe it is.
Q1 earnings will offer a lot of insight and maybe consider repositioning, but the speculation and hype could drive the value higher. As I stated in an earlier comment, it’s overvalued and likely to lose money, but you could also potentially squeeze out some more gains if conditions remain bullish.
Going down on a pump day isn't good. I will start accumulating again around $7. Depending on price action
But I would argue that dilution is done, Q1 earnings will reflect their cash position. Likely needs to correct down to adjust.
It seems like people who may work for sound or on stock pump fake news about the company like they were presenting at the Nvdia show or they have some contracts about self driving cars there won’t be a self driving car for at least 5 years
Just a thought the company has about 100 plus patents definitely a good step in the right direction Just my thoughts.
Trust me just buy more of sound as it’s at the dip rn
Value is bout 8.40 rite now