Where Will SoundHound AI Stock Be in 2 Years? | SOUN Stock Prediction | SoundHound Stock Analysis |

Parkev Tatevosian, CFA
21 Mar 202408:52

TLDRIn this video, the creator updates their SoundHound AI stock price prediction for 2025, noting that the stock has already surpassed previous long-term predictions. Using the company's current Enterprise Value, EV to revenue ratio, and 2025 revenue forecasts from Wall Street analysts, the creator estimates a new range of $2.9 billion to $3.2 billion for SoundHound AI's Enterprise Value in 2025. The discussion includes potential catalysts for growth, such as achieving adjusted EBITDA positivity by the end of 2025.

Takeaways

  • 📈 The speaker is updating their SoundHound AI stock price prediction for 2025, previously bullish on the stock.
  • 🚀 SoundHound AI's stock has already outperformed the speaker's 2025 prediction, surpassing the projected mark.
  • 💰 The current Enterprise Value (EV) of SoundHound AI is $2.75 billion, a comprehensive measure including market cap, cash, and debt.
  • 📊 SoundHound AI's EV to revenue ratio is 60, up from 20, reflecting recent growth and restructuring efforts.
  • 🔍 Wall Street analysts predict SoundHound AI's 2025 revenue to be between $99.4 million and $105.7 million.
  • 🤔 The speaker's initial 2025 stock price prediction for SoundHound AI was between $2 billion and $2.2 billion.
  • 🌟 SoundHound AI's EV has already increased from $1.47 billion to $2.7 billion, exceeding the previous forecast.
  • 📉 The speaker anticipates a potential decrease in the EV to revenue ratio due to the rapid recent increase.
  • 💹 An updated prediction places SoundHound AI's 2025 EV between $2.9 billion and $3.2 billion, a more conservative estimate.
  • 🔥 A catalyst for SoundHound AI's growth is the company's target to achieve adjusted EBITDA positivity by the end of 2025.

Q & A

  • What is the speaker updating in the video?

    -The speaker is updating their stock price prediction for SoundHound AI for the year 2025.

  • How has SoundHound AI stock performed compared to the speaker's previous prediction?

    -SoundHound AI stock has outperformed the speaker's previous prediction for 2025, having already surpassed the mark that was predicted.

  • What is the current Enterprise Value (EV) of SoundHound AI?

    -The current Enterprise Value of SoundHound AI is $2.75 billion.

  • What is the EV to revenue ratio for SoundHound AI at the time of the video?

    -At the time of the video, the EV to revenue ratio for SoundHound AI is 60.

  • What was the initial revenue estimate for SoundHound AI in 2025 according to the speaker's previous video?

    -In the speaker's previous video, the initial revenue estimate for SoundHound AI in 2025 was $9.77 million.

  • What is the Wall Street consensus estimate for SoundHound AI's 2025 revenue?

    -The Wall Street consensus estimate for SoundHound AI's 2025 revenue is $102.7 million.

  • What was the speaker's previous stock price prediction range for SoundHound AI in 2 years?

    -The speaker's previous stock price prediction range for SoundHound AI in 2 years was between $2 billion and $2.2 billion.

  • What is the speaker's updated prediction for SoundHound AI's Enterprise Value in 2025?

    -The speaker's updated prediction for SoundHound AI's Enterprise Value in 2025 is between $2.9 billion and $3.2 billion.

  • What could cause SoundHound AI's Enterprise Value to decrease according to the speaker?

    -The speaker believes that if the EV to revenue ratio falls, SoundHound AI's Enterprise Value could decrease, as the valuation has increased significantly in a short period of time.

  • What is the catalyst that the speaker believes will lift SoundHound AI's stock price higher?

    -The speaker believes that achieving adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) positivity by the end of 2025 or demonstrating progress towards that goal will be the catalyst to lift SoundHound AI's stock price higher.

Outlines

00:00

📈 SoundHound AI Stock Price Prediction Update for 2025

The video begins with the creator updating their previous long-term bullish prediction for SoundHound AI's stock price in 2025. They note that the stock has already surpassed the predicted mark, prompting a revision based on the company's recent earnings report and management's updated projections. The creator uses the current Enterprise Value (EV) of $2.75 billion and its EV to revenue ratio of 60 to make a new price prediction. Wall Street analysts' consensus estimate for SoundHound AI's 2025 revenue is $102.7 million, higher than the company's own estimate of $100 million. The creator's previous prediction placed the stock's EV between $2 billion and $2.2 billion in two years, but it has already exceeded these expectations. The video highlights the company's impressive growth, cost control, and the impact of restructuring changes on its soaring stock price.

05:00

🔄 Updated SoundHound AI Enterprise Value Prediction Scenarios

The creator discusses various scenarios for SoundHound AI's Enterprise Value (EV) in 2025, based on changes in the company's revenue estimate and its EV to revenue ratio. The revenue estimate has increased by $3 million to $102.76 million, and the EV to revenue ratio has jumped from 38.5 to 60. The creator outlines four potential outcomes: if the EV to revenue ratio remains the same, the EV could rise to $6.165 billion; if it falls to 40, the EV could be $4.1 billion; if it drops to 30, the EV might reach $3.82 billion; and if it declines to 20, the EV could be $2 billion. The creator's base case prediction is an EV between $2.9 billion and $3.2 billion, citing the company's potential to achieve adjusted EBITDA positivity by the end of 2025 as a key catalyst for growth. The video concludes with a promotional message about a free financial analysis offer.

Mindmap

Keywords

💡SoundHound AI

SoundHound AI is the central subject of the video, a company that specializes in artificial intelligence and is being discussed in terms of its stock price prediction for 2025. The video focuses on the company's performance, its revenue growth, and how these factors influence its stock price and enterprise value.

💡Stock Price Prediction

Stock Price Prediction refers to the forecast of a company's stock price in the future, based on various financial metrics and market trends. In the context of the video, the creator is updating their prediction for SoundHound AI's stock price for the year 2025, taking into account recent financial reports and market reactions.

💡Enterprise Value

Enterprise Value, or EV, is a financial metric that represents the total value of a company, taking into account its market capitalization, cash on hand, and debt. It provides a more comprehensive view of a company's value than market capitalization alone. In the video, the EV of SoundHound AI is used to make predictions about its future stock price.

💡EV to Revenue Ratio

The EV to Revenue Ratio is a financial metric that compares a company's Enterprise Value to its revenue. It is used to evaluate how much investors are willing to pay for each dollar of revenue a company generates. In the context of the video, this ratio is used to assess SoundHound AI's valuation and to make predictions about its future stock price.

💡Revenue Projections

Revenue Projections are estimates of how much money a company is expected to earn in a specific period, usually in the future. These projections are based on historical performance, market trends, and other economic factors. In the video, SoundHound AI's revenue projections for 2025 are a key factor in the updated stock price prediction.

💡Market Capitalization

Market Capitalization, also known as market cap, is the total value of all a company's shares of stock. It is calculated by multiplying the company's share price by the number of its outstanding shares. Market capitalization is an important metric for investors as it gives an indication of a company's size and investment potential.

💡Wall Street Analysts

Wall Street Analysts are financial experts who work for investment banks, financial institutions, or as independent consultants. They analyze financial data, market trends, and company performance to provide investment advice and forecasts. In the video, the opinions and forecasts of Wall Street Analysts are considered when making predictions about SoundHound AI's future stock price.

💡Valuation

Valuation refers to the process of determining the economic value of an asset or company, often based on its financials, market conditions, and future prospects. In the context of the video, the valuation of SoundHound AI is discussed in relation to its Enterprise Value and the EV to Revenue Ratio.

💡Adjusted EBITDA

Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a financial metric that provides a measure of a company's profitability and financial health. It excludes certain non-operational and non-cash expenses to give a clearer picture of a company's operational performance. In the video, the expectation of SoundHound AI achieving positive adjusted EBITDA by the end of 2025 is seen as a potential catalyst for an increase in its stock price.

💡Catalyst

A Catalyst, in a financial context, refers to an event or development that triggers a significant change in a company's stock price or market value. In the video, the potential achievement of positive adjusted EBITDA by SoundHound AI is considered a catalyst that could drive the company's stock price higher.

Highlights

The video provides an updated stock price prediction for SoundHound AI for 2025.

SoundHound AI's stock has already outperformed the previous 2025 prediction.

The latest updates include the company's recent earnings report and management's updated projections.

SoundHound AI is currently trading at an Enterprise Value of $2.75 billion.

The EV to revenue ratio for SoundHound AI is 60, reflecting a significant increase from 20.

SoundHound AI has shown phenomenal growth in recent quarters and made restructuring changes to control costs.

Wall Street analysts predict SoundHound AI's 2025 revenue to be between $99.4 million and $105.7 million.

Management's own revenue prediction for 2025 is $100 million.

The initial stock price prediction for SoundHound AI in 2025 was between $2 billion and $2.2 billion.

SoundHound AI's Enterprise Value has already increased to $2.7 billion, surpassing the previous prediction.

The updated stock price prediction for 2025 is between $2.9 billion and $3.2 billion.

The EV to revenue ratio is expected to decrease from the current 60 due to the rapid increase in valuation.

A potential catalyst for SoundHound AI's growth is achieving adjusted EBITDA positivity by the end of 2025.

SoundHound AI has demonstrated the ability to increase revenue while keeping costs under control.

The combination of revenue growth and cost control is expected to lift the stock price higher.

The video is sponsored by The Motley Fool, offering the 10 best stocks to buy now.

The speaker invites viewers to subscribe for free financial analysis from a professor with decades of investing experience.

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