Sound Hound AI (NASDAQ:SOUN) Stocks rose in this week's trading. The company's share price closed this week up 48 percent from last Friday's market close, according to data from S&P Global Market Intelligence.
car maker Stellantes This week expanded the integration of SoundHound's voice-based artificial intelligence (AI) technologies in Europe. The growth could be a key driver of sales for the voice interface software specialist, and investors have pumped up the stock in response.
SoundHound's expansion into Europe is growing.
With an update released this week, Stellantis made SoundHound's voice-based operating system available in compatible Peugeot, Opel, and Vauxhall vehicles, and the technology will now be included with new vehicles from those brands. The software includes OpenAI's ChatGPT chatbot and has been launched for these brands in Germany, France, UK, Italy, and seven other European markets.
By the end of July, SoundHound integration for Peugeot, Opel, and Vauxhall vehicles is expected to be rolled out in a total of 17 European markets. The extended debut follows the production integration of Stellantis' high-performance DS automobile brand in March.
In addition to these units, the Auto Group also includes businesses including Chrysler, Dodge, Fiat and Jeep. It's possible that other automakers under the Stellantis umbrella will move to incorporate technologies from the Soundhound in the not-too-distant future.
What comes after Soundhound AI stock?
After this week's explosive gains, SoundHound's market cap has climbed back above the $2 billion mark. On the other hand, the company's stock is still down about 30.5 percent from the 52-week high it hit earlier this year.
Soundhound stock has been highly volatile amid a surge of excitement around AI and uncertainty about the company's long-term sales outlook. Soundhound is now trading at about 29 times this year's projected sales, after a roughly 192% increase in 2024 trading.
With its last quarterly report, SoundHound reported a 73% year-over-year sales increase. Business is showing some impressive momentum, but sales were still relatively low — coming in at $11.6 million in the period. The software major also posted a net loss of $33 million in the quarter.
The company seems to be landing and growing key partnerships, but it remains to be seen whether the company can build a defensible moat and withstand competitive pressures. Given Soundhound AI's valuation profile and speculative outlook, the stock is likely to remain highly volatile in the near term.
Should you invest $1,000 in SoundHound AI now?
Before buying stock in SoundHound AI, consider this:
gave Motley Fool Stock Advisor The analysis team only indicated what they believed. 10 Best Stocks For investors to buy now… and SoundHound AI was not one of them. 10 stocks that made the cut could generate monster returns in the coming years.
Consider when Nvidia This list was created on April 15, 2005… If you invested $1,000 at the time of our recommendation, You will have $780,654.!*
Stock Advisor Provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks every month. gave Stock Advisor There is a service More than four times S&P 500 Returns since 2002*.
View 10 Stocks »
*Stock Advisor returns on July 8, 2024
Keith Noonan has no position in any stocks. The Motley Fool recommends Stellantis. The Motley Fool has a Disclosure Policy.
Why Soundhound AI Stock Skyrocketed This Week was originally published by The Motley Fool.