Can SOUN's Strong Portfolio Keep the Stock's Momentum Intact in 2025?

SoundHound AI SOUN shares have skyrocketed 755.9% in the trailing 12 months, outperforming the Zacks Computer and Technology sector’s appreciation of 35.4% and the Zacks Computers – IT Services industry’s return of 15.9%.SOUN has been benefiting from an innovative portfolio, a rich partner base and a growing clientele. It recently unveiled the first-ever in-vehicle voice commerce platform at CES 2025. The cutting-edge system enables drivers and passengers to order takeout directly from the car’s infotainment system.SOUN is in talks with major automakers to pilot this voice-powered ordering system, bringing seamless transactions to car infotainment systems. It plans to commercially launch this voice commerce platform with its partner automakers and restaurants in 2025.This latest launch will strengthen SOUN’s position as a leader in voice AI technology, opening up new potential revenue streams through partnerships with restaurants and automakers. It estimates Voice AI to have an addressable market worth more than $140 billion. One Year PerformanceImage Source: Zacks Investment ResearchSOUN stock is currently trading above the 50-day and 200-day moving averages, indicating a bullish trend.SOUN Stock Trading Above 50-Day & 200-Day SMAImage Source: Zacks Investment ResearchHowever, can SOUN shares continue to sustain this momentum? Let’s dig deeper to find out.Expanding Footprint Aids SOUN’s ProspectsSoundHound AI’s prospects benefit from its expanding footprint in industries like automotive and restaurants, driven by its innovative AI-powered portfolio with products like Smart Answering, Smart Ordering, Dynamic Drive Thru, Amelia AI Agents and SoundHound Chat AI.For restaurants, SOUN is expanding its offerings across drive-thru phone ordering and supporting its staff with Employee Assist. Its client base in this domain includes popular names like Panda Express, Church’s Texas Chicken, White Castle, Firehouse Subs, Five Guys and Chipotle Mexican Grill CMG. In its partnership with Applebee’s, SOUN has now penetrated two-thirds of their locations.SOUN has collaborated with Church’s Texas Chicken to provide a voice AI-powered drive-thru solution. The system provides instant, human-like interaction and improved order accuracy by ignoring off-topic speech.SOUN has partnered with Torchy’s Tacos to launch its Smart Ordering voice AI at the latter’s 130 locations. The system, trained on Torchy’s Tacos menu, handles 100% of calls, processes customized orders and answers menu or store-related queries.SOUN has strengthened its footprint in the automotive industry by introducing its advanced SoundHound Chat AI voice assistant, integrated with ChatGPT, into Peugeot, Opel, Vauxhall, Alfa Romeo, Citron and DS Automobiles vehicles across 11 European markets like Austria, France, Germany, Italy, Spain and the U.K.SOUN has partnered with Lucid Group LCID to launch the Lucid Assistant, a hands-free voice assistant for controlling vehicle functions. Powered by SoundHound Chat AI with generative AI technology, it improves in-vehicle experience with real-time data and intuitive controls.In the Indian market, SOUN has expanded its partnership with Kia, adding additional Hindi language capabilities to several models. It is offering voice AI assistance to VE commercial trucks, which is a joint venture between Volvo and Eicher.SOUN’s wins across diverse sectors with industry leaders like Telefonica TEF, MUSC Health, EXL, Truity Credit Union and Turret are further expanding its footprint.SOUN Offers Positive View for 2025SoundHound AI expects revenues between $155 million and $175 million for 2025.The Zacks Consensus Estimate for SOUN’s 2025 revenues is pegged at $162.99 million, indicating year-over-year growth of 94.91% from 2024’s estimated figure of $83.63 million.The consensus mark for SOUN’s 2025 loss is currently pegged at 27 cents per share, unchanged over the past 30 days. The company is expected to report a loss of 38 cents in 2024.SOUN beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, the average earnings surprise being 1.25%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.SoundHound AI, Inc. Price and Consensus SoundHound AI, Inc. price-consensus-chart | SoundHound AI, Inc. QuoteSOUN Stock OvervaluedSOUN stock is overvalued at present, as its Value Score of F suggests.The shares are trading at a significant premium with a forward 12-month Price/Sales of 40.56X compared with the broader sector’s 7.12X.Price/Sales Ratio (F12M)Image Source: Zacks Investment ResearchSOUN Stock: Buy, Sell or Hold?SOUN’s innovative AI-powered portfolio makes it well-positioned to benefit from strong demand across sectors like automotive, restaurants, banks and healthcare.However, SOUN is a risky bet in the uncharted voice AI domain. It is reporting losses, given significant spending on research and development as well as on acquisitions. SOUN expects to generate positive adjusted EBITDA by the end of 2025. These factors can drag down the shares in the near term.SoundHound AI currently has a Growth Score of F, which means it is not an ideal investment for growth-oriented investors. Its stretched valuation is a concern.SOUN currently carries a Zacks Rank #3 (Hold), suggesting that investors should wait for a better entry point to add the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Telefonica SA (TEF): Free Stock Analysis Report Chipotle Mexican Grill, Inc. (CMG): Free Stock Analysis Report Lucid Group, Inc. (LCID): Free Stock Analysis Report SoundHound AI, Inc. 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