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Chicago, IL – July 8, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: SoundHound AI, Inc. SOUN, BigBear.ai Holdings, Inc. BBAI, Casey’s General Stores, Inc. CASY and Chipotle Mexican Grill, Inc. CMG.
Shares of SoundHound AI, Inc. and BigBear.ai Holdings, Inc. have soared 182.2% and 423.7% over the past year due to the rapid growth of artificial intelligence (AI). Let’s explore which of these AI stocks investors should prioritize for future returns.
SoundHound AI reported first-quarter revenues of $29.1 million, a 151% increase year over year. SoundHound AI anticipates 2025 revenues of $157 million to $177 million, up from last year’s $84.7 million. SoundHound AI’s 2024 booking backlog of $1.2 billion suggests strong long-term revenue growth, alongside a total addressable market (TAM) of $140 billion, indicating potential for further expansion.
Demand for SoundHound AI’s voice solutions is growing due to their efficiency and automation benefits. The conversational AI market is projected to grow from $17.05 billion in 2025 to $49.80 billion by 2031, per marketsandmarkets, offering opportunities for increased customer acquisition.
Rising customer demand for quick service and labor shortages are driving restaurants to adopt voice automation, benefiting SoundHound AI, which now counts Casey’s General Stores, Inc. and Chipotle Mexican Grill, Inc. among its clients. Finally, if trade tensions ease, SoundHound AI’s overseas costs, particularly in China, will decrease, benefiting its bottom line.
BigBear.ai’s AI shipbuilding software supports U.S. Navy submarine construction, and its facial recognition technology is used in airport security. The company reported $34.8 million in first-quarter revenues, a 5% year-over-year increase. For the full year, BigBear.ai expects revenues to increase to $160-$180 million.
In 2025, BigBear.ai experienced leadership changes, with Kevin McAleenan becoming CEO in January and the CFO departing in June; McAleenan’s prior role as U.S. Homeland Security Secretary may aid in securing government contracts.
Despite revenue growth, SoundHound AI and BigBear.ai are unprofitable, with losses of $188 million and $62 million in the past 12 months and the first quarter, respectively. BigBear.ai’s adjusted EBITDA worsened from -$1.6 million to -$7 million due to increased R&D spending.
However, SoundHound AI’s first-quarter revenue growth significantly outpaces BigBear.ai, with a robust balance sheet showing negligible debt, total assets of $587.5 million, and $245.8 million in cash exceeding total liabilities of $190.5 million. On the other hand, BigBear.ai had total liabilities of $198.5 million in the first quarter, including $100.6 million in long-term debt.
BigBear.ai’s weak sales growth and balance sheet hinder profitability, while SoundHound AI’s strong sales and healthy balance sheet suggest profitability by the end of 2025. Moreover, BigBear.ai relies heavily on federal contracts, making it vulnerable to cuts, while SoundHound AI is less exposed to such risks, making it a better AI investment choice.
Having said that, BigBear.ai’s backlog rose 30% year over year to $385 million in the first quarter, fueled by new government contracts, indicating potential growth and investment opportunity. Currently, each of the stocks has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
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Zacks Investment Research
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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This article originally published on Zacks Investment Research (zacks.com).
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