SOUN - 3 Things You Need to Know Before Buying SoundHound AI Stock
2024-05-15 09:10:00 ET
Artificial intelligence (AI) has the potential to change virtually every facet of a person's life, much like the internet has over the past few decades. As a result, the excitement and bullishness in AI has resulted in many stocks generating incredible returns. A prime example of that is SoundHound AI (NASDAQ: SOUN) .
This year alone, shares of the AI stock are already up a staggering 156%, and at one point they were up as much as 320%. Chipmaker Nvidia has a stake in the business, which is a key reason many investors are also bullish on the voice AI company. But before you jump in and invest in this up-and-coming business, there are three important things you need to know.
SoundHound is not a profitable business, nor is it generating positive cash flow. During the first three months of the year, the company used up $21.9 million simply to run its day-to-day operating activities. As the business tries to scale its operations, that cash burn may accelerate.
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3 Things You Need to Know Before Buying SoundHound AI Stock