"While the broader market dipped 1.29% this week, SoundHound's decline was nearly 10 times steeper. Year to date, the stock has fallen 25.18%, compared to the S&P 500's essentially flat performance. The company's beta of 2.876 means it moves almost three times as violently as the market, amplifying both rallies and selloffs. SoundHound trades at a $3.13 billion market cap despite generating just $148.4 million in trailing twelve month revenue. That 21x price to sales ratio reflects high growth expectations."
"How can momentum stocks reverse this decline? Performance is one area to watch. 90 days ago, Wall Street expected SoundHound would see -$.05 in adjusted EPS in 2026, today that number sits at -$.08. With Wall Street selling off momentum stocks broadly, the companies that will stand out need to see their estimates moving forward if share prices are goign to follow."
SoundHound AI shares fell 12.85% this week to $7.46 and are down 51% over the past year while the S&P 500 gained 11.81%. Year-to-date decline is 25.18% versus a flat S&P 500. The stock's beta of 2.876 amplifies market moves. Market capitalization is $3.13 billion against $148.4 million in trailing twelve‑month revenue, implying a 21x price-to-sales ratio. A broad sell-off of high P/S momentum stocks began in mid-October, hitting AI and small-cap categories. Wall Street 2026 adjusted EPS expectations worsened from -$0.05 to -$0.08 over 90 days. Q4 2025 results are due February 26, 2026, with sales expected at $53.88 million and adjusted EPS at -$0.10, after last quarter's $42.05 million in sales and an adjusted EPS that matched estimates at -$0.03.
Read at 24/7 Wall St.
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