Why These 15 Software Stocks Are Plunging In 2025

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8. SoundHound AI Inc (NASDAQ:SOUN)

Number of Hedge Fund Holders In Q4 2024: 21

SoundHound AI Inc (NASDAQ:SOUN) makes voice artificial intelligence solutions and sells them to businesses.

The stock is down significantly so far in 2025 due to SoundHound’s struggle with consistent revenue growth in its core business.

The company reported a record Q4 2024 revenue of $34.5 million, up 101% year-over-year.  Revenue from its original operations, excluding 2024 acquisitions, has weakened. This inconsistency has raised red flags for investors who expected sustained organic growth.

Profitability remains elusive for SoundHound, and this has added pressure on the stock. The company posted a GAAP net loss of $351.10 million in 2024, a 282.8% increase from 2023, despite revenue growth to $84.69 million. Investors are wary because the firm has yet to achieve positive earnings, even though management aims for adjusted EBITDA positivity by the end of 2025.

The consensus price target of $12.86 implies 30.4% upside.

SOUN stock is down 50.30% year-to-date.

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