SoundHound AI Shows Bullish Momentum Amid High Investor Interest, Targeting $8.00 Price Point

Technical Analysis

SoundHound AI, Inc. (NASDAQ: SOUN) has demonstrated notable price action recently, with a slight dip of 1.08% on November 20, closing at $6.44. The stock traded within a range of $6.30 to $6.74, encountering resistance near $6.63. The Average True Range (ATR) of 9.11 indicates potential volatility, and the current RSI14 at 63 suggests the stock is nearing overbought territory, which may precede a short-term pullback.

The 50-day and 200-day moving averages stand at $5.40 and $5.02, respectively, both below the current price, indicating a bullish trend. The MACD positive value further supports upward momentum. Volume has significantly surpassed the average at 65.55 million compared to 22.40 million, signaling increasing investor interest and potential continuation of bullish behavior.

Fundamental Analysis

SoundHound AI presents a forward-looking narrative in its fundamentals despite having a negative EPS of -0.35 and a PE ratio of -19.77, which reflects the company's current lack of profitability. However, recent news highlights its expanding footprint in enterprise Voice AI solutions and an optimistic view of reaching profitability by the end of 2025. Analyst consensus shows optimism, with a median price target of $8.00 and a consensus view of 'Buy' supported by five buy ratings. Its current market cap of approximately $2.56 billion underscores its growing presence within the AI sector.

Predictions

For the next trading day, anticipated fluctuations within $6.30 and $6.63 are plausible. However, breaking through the resistance level could see further gains. Looking ahead over the next week, sustained positive sentiment and high volume might drive the stock toward the target median of $8.00, contingent on broader market conditions and industry sentiment.

Intrinsic Value and Long-term Investment Potential

SoundHound AI's intrinsic value is challenging to quantify due to the negative earnings. The significant potential is underscored by its expansion into multiple industry verticals and the AI industry's overall growth trajectory. As the company progresses towards profitability and potentially increasing its revenue streams, its intrinsic value proposition may align with growth-oriented portfolios.

Overall Evaluation

SoundHound AI, Inc. is currently positioned as a 'Buy' candidate. The stock's positive technical momentum, favorable analyst ratings, and strategic advancements in AI suggest potential future value. However, investors should be vigilant regarding high volatility metrics and monitor progress towards profitability as projected by company forecasts.