Why SoundHound AI, Inc. (SOUN) Soared on Friday

We recently compiled a list of the Wall Street Optimism Spills Over to These 10 Stocks on Friday. In this article, we are going to take a look at where SoundHound AI, Inc. (NASDAQ:SOUN) stands against the other stocks.

Wall Street finished the trading week stronger, posting gains by more than 1 percent after slipping into the negative territory at intra-day trading following a clash between US President Donald Trump and Ukrainian leader Volodymyr Zelensky at the White House.

Following the televised meeting, the two leaders concluded the encounter without a deal for joint development of mineral resources.

The Dow Jones jumped by 1.39 percent, the S&P 500 surged by 1.59 percent, and the Nasdaq soared by 1.63 percent.

The broader market optimism spilled into individual stocks, with 10 companies ending the trading session with strong gains. In this article, we have detailed the reasons behind their impressive performance.

To come up with Friday’s top gainers, we considered only the stocks with $2 billion in market capitalization and $5 million in daily trading volume.

A software engineer focused on a computer screen, writing code to create a conversational assistant.

SoundHound AI, Inc. (NASDAQ:SOUN)

SoundHound AI, Inc. (NASDAQ:SOUN) rallied by 17.48 percent on Friday to close at $10.82 apiece as investors cheered the company’s optimistic outlook for the year despite its dismal earnings performance last year.

In its earnings release, SoundHound AI, Inc. (NASDAQ:SOUN) said it was raising its revenue outlook for the year to settle between $157 million and $177 million.

In the fourth quarter of 2024, SoundHound AI, Inc. (NASDAQ:SOUN) saw its net loss widened by 1,333 percent to close at $259 million from $18 million in the same period a year earlier, as gross profit doubled to $34.5 million from $17 million.

In full-year 2024 alone, net loss increased by 294 percent to $350.68 million from $88.9 million despite revenues growing by 85 percent to $84.69 million from $45.87 million year-on-year.

Overall SOUN ranks 2nd on our list of Friday’s top gainers. While we acknowledge the potential of SOUN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than SOUN but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.