In the latest trading session, SoundHound AI, Inc. (SOUN) closed at $6.34, marking a -1.63% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.1% for the day. Meanwhile, the Dow gained 0.35%, and the Nasdaq, a tech-heavy index, lost 0.43%.
Shares of the company have depreciated by 20.79% over the course of the past month, underperforming the Computer and Technology sector's loss of 2.15%, and the S&P 500's loss of 1.34%.
Market participants will be closely following the financial results of SoundHound AI, Inc. in its upcoming release. On that day, SoundHound AI, Inc. is projected to report earnings of -$0.05 per share, which would represent a year-over-year decline of 66.67%. At the same time, our most recent consensus estimate is projecting a revenue of $52.61 million, reflecting a 23.27% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of -$0.18 per share and a revenue of $233.14 million, indicating changes of -38.46% and +38.02%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for SoundHound AI, Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, SoundHound AI, Inc. holds a Zacks Rank of #4 (Sell).
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 110, finds itself in the top 46% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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SoundHound AI, Inc. (SOUN): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).