SoundHound AI Stock Sinks 8% as Revenue Misses Wall Street's Estimate. Is SOUN Stock a Buy?
In the first quarter, the AI-powered voice solutions provider continued to post strong revenue growth, but its sizable losses also continued.
SoundHound AI (NASDAQ: SOUN) stock declined 7.8% on Friday following the conversational artificial intelligence (AI) technology provider's release of its first-quarter 2025 report on the prior afternoon. The drop is largely attributable to the quarter's revenue falling short of Wall Street's expectations. The bottom-line result was in line with the analyst consensus estimate.
Image source: SoundHound AI.
Investors should focus on the adjusted numbers, which exclude one-time items. Q1 2025 GAAP numbers include an accounting-only (noncash) gain related to acquisitions. Data source: SoundHound AI. GAAP = generally accepted accounting principles.
