SoundHound AI (NASDAQ:SOUN) is on fire. The stock hit a jaw-dropping 52-week high of $12.40, clocking an insane 485% year-to-date growth. Let’s break it down: revenue for Q3 smashed expectations at $25.1 million, and management isn’t slowing down, upping their 2025 forecast to $175 million. But it’s not just about numbers. Strategic moves like the rollout of their Smart Ordering tech at Torchy’s Tacos and partnerships with Apivia Courtage show SoundHound isn’t just playing the gameit’s rewriting the rules. From voice-controlled drive-thrus to AI-powered insurance services, they’re making big plays in a $160 billion market.
But here’s the kicker: Reddit and meme stock traders have entered the chat. Over 80% stock surge since October has all the hallmarks of a short squeeze, artificially juicing the price as social media influencers hype it up. It’s exciting, but dangerousmeme bubbles pop, and when they do, most speculators are left holding the bag. For all its impressive tech and a billion-dollar contract backlog, SoundHound’s valuation right now feels like it’s on a sugar high. Analysts like H.C. Wainwright still give it a Buy rating but peg a more grounded $8 price target.
What’s next? For long-term investors, patience could be your best play. SoundHound’s tech is the real deal, already handling 100 million interactions and driving real results for big names like Stellantis (NYSE:STLA), LG, and Chipotle (NYSE:CMG). But if you’re thinking of jumping in now, tread carefullythis stock is buzzing with potential, but the price action is a rollercoaster. Sit tight, keep your eye on a more reasonable entry point, and remember: time in the market beats trying to ride the meme wave.
This article first appeared on GuruFocus.
