SoundHound AI (SOUN) Stock Surges Ahead of Q3 Earnings: What Investors Need to Know

SoundHound AI, Inc. (NASDAQ: SOUN) is garnering significant attention from investors as the company prepares to release its Q3 earnings results on November 12, 2024. The stock has seen a notable surge in recent trading, with shares up 0.7% on Monday, trading as high as $7.56 and closing at $7.25.

Analysts are optimistic about the upcoming earnings, forecasting a significant revenue jump. According to TipRanks, analysts expect SoundHound AI to report earnings per share of -$0.07 on revenue of $23.02 million, representing year-over-year increases of 22.2% and 73.5%, respectively.

The company has a history of mixed performance in beating earnings estimates, having done so only three times in the past eight quarters. However, the overall sentiment from Wall Street remains positive, with a “Strong Buy” consensus rating based on multiple buy and hold ratings from various analysts. The average price target for SOUN stock is $7.70, indicating potential upside.

SoundHound AI has been expanding its portfolio through strategic acquisitions, including the recent purchase of enterprise AI software firm Amelia for $80 million. This move has sparked interest among investors and contributed to the stock’s recent gains.

Options traders are anticipating a large move in the stock price following the earnings announcement, with an expected 24.31% move in either direction. This anticipation is reflected in the at-the-money straddle of the options closest to expiration after the earnings report.