SoundHound AI, Inc. (SOUN) shares ended the last trading session 9.2% higher at $10.73. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 2.8% loss over the past four weeks.
SoundHound AI’s recent stock rally likely reflects investor enthusiasm fueled by the broader surge in artificial intelligence stocks and growing confidence in the company’s voice-AI capabilities. With expanding applications across the automotive and restaurant sectors, such as Smart Ordering and in-vehicle voice commerce, the company is gaining commercial traction. Also, strategic partnerships, recent customer acquisitions, and a focus on real-world deployments are strengthening market visibility. These developments are likely reinforcing investor confidence in the company’s long-term growth prospects.
This company is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of +45.5%. Revenues are expected to be $33.03 million, up 145.4% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For SoundHound AI, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SOUN going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
SoundHound AI is a member of the Zacks Computers - IT Services industry. One other stock in the same industry, Amdocs (DOX), finished the last trading session 0.3% higher at $91.24. DOX has returned -0.8% over the past month.
Amdocs' consensus EPS estimate for the upcoming report has remained unchanged over the past month at $1.71. Compared to the company's year-ago EPS, this represents a change of +5.6%. Amdocs currently boasts a Zacks Rank of #4 (Sell).
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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report Amdocs Limited (DOX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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