SoundHound AI is growing fast, but the stock is priced for perfection.

I've been standoffish on SoundHound AI ( SOUN 2.70% ) for almost a year now. I love what the company is doing and see tremendous long-term value in the stock, but the share price has been way too rich since a meme stock surge in December 2024.

The worst of last year's overheating has subsided, and SoundHound AI keeps making strides in its business results. Is the stock a good investment at this point?

Let's take a look.

SoundHound AI by the numbers

I can't ignore one simple fact: This is still an expensive stock .

SoundHound AI trades at a lofty 38 times trailing sales, and its profits are consistently negative. I mean, the company reported a $78 million operating loss in the second quarter of 2025, ba

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