SoundHound AI Stock Surged 60%, Here’s Why
SoundHound AI (SOUN)’s stock surged 61%, fueled by a near doubling in revenue that outpaced AI market jitters and valuation worries. Behind the headline jump lie key earnings beats, expanding partnerships, and fresh profit outlooks—setting the stage for a deeper look at what’s really driving this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 11212024 | 11212025 | Change | |
|---|---|---|---|
| Stock Price ($) | 7.0 | 11.2 | 60.7% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 67.3 | 131.4 | 95.3% |
| P/S Multiple | 37.4 | 34.2 | -8.6% |
| Shares Outstanding (Mil) | 360.4 | 400.1 | -11.0% |
| Cumulative Contribution | 58.8% |
So what is happening here? The stock jumped 61%, driven by a strong 95% rise in revenue, partly offset by an 8.6% dip in valuation. Let’s dive into the key events behind these shifts.
Here Is Why SoundHound AI Stock Moved
- Recent Earnings Beat: Q3 2025 EPS and revenue beat estimates, boosting 2025 revenue guidance.
- AI Market Volatility: Initial AI hype surge (Nov 2024) followed by 2025 correction; Nvidia news impacted it (Nov 2025).
- Partnerships Expansion: Gained new customers and expanded key partnerships across automotive and restaurant sectors.
- Valuation Concerns: Identified as overvalued in Dec 2024, leading to a significant stock drop by Nov 2025.
- Profitability Outlook: Expectation of achieving break-even profitability as it exits 2025 and enters 2026.
Our Current Assesment Of SOUN Stock
Opinion: We currently find SOUN stock unattractive. Why so? Have a look at the full story. Read Buy or Sell SOUN Stock to see what drives our current opinion.
Risk: A good way to gauge risk is by examining how much Sound Financial (SOUN) has fallen during major market downturns. During the Inflation Shock, it dropped nearly 94%, which is a huge hit. Past crises also show sharp declines, reminding us that even solid companies can suffer severe losses. Favorable fundamentals matter, but when the market sells off hard, SOUN is not immune to big pullbacks. It’s a solid reminder to keep risk in check, no matter how promising the stock looks.
SOUN stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.