Preeti
SoundHound AI’s shares surged over 14% in late trading after surpassing analysts’ revenue estimates and raising annual sales outlook. Despite a wider loss, CEO Keyvan Mohajer attributed the growth to the increasing demand for voice AI as a customer service tool. The company reported a revenue of $11.6 million for the first quarter, up 73% from the previous year, but posted a net loss of $33 million. SoundHound increased its full-year revenue guidance and highlighted the importance of voice AI tools for customer service.
The company has partnerships in various sectors, including restaurants and automobiles, for its voice AI assistant tools. It also partnered with Perplexity to enhance its voice assistant technology with large language model capabilities. SoundHound attracted investor attention after Nvidia disclosed a stake in the company. Investors are advised to monitor if the stock can close above the 50-day moving average to potentially trigger a rally to previous highs.
SoundHound’s stock price has shown volatility, with a notable correction following a golden cross buy signal in February. The company’s recovery and positive sales outlook suggest potential for further growth. Investors should consider the company’s partnerships and expanding use of voice AI tools in various industries as indicators of future success.
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