SoundHound AI (SOUN) Surges 17.34% on Rating, Price Upgrade

We recently published Wall Street Shockers: 10 Stocks on Fire. SoundHound AI Inc. (NASDAQ:SOUN) is one of the best-performing stocks on Monday.

SoundHound AI soared by 17.34 percent on Monday to end at $15.9 apiece as investors took path from an investment firm’s upgraded rating for its stock.

In a market note, Ladenburg Thalmann raised SoundHound AI Inc. (NASDAQ:SOUN) to “buy” from “neutral” previously, alongside a higher price target of $16, as compared with the $9 prior.

According to Ladenburg, the upgrade was based on SoundHound AI Inc.’s (NASDAQ:SOUN) increasing deals in the automotive sector that “can give potential upside opportunity.”

“The penetration in Autos is growing as the company recently announced three major automotive brands in the US have rolled out with SOUN Chat AI embedded. This product drives user engagement and helps establish tech leadership in an increasingly competitive space … Management has pegged in-car commerce opportunity for OEMs at $35 billion annually,” it said.

In an updated report, SoundHound AI, Inc. (NASDAQ:SOUN) said it narrowed its non-GAAP net loss in the second quarter of the year by 20 percent to $11.86 million from $14.89 million in the same period last year, but widened its GAAP net loss by 100 percent to $78 million from $37 million year-on-year.

Revenues, on the other hand, soared by 217 percent to $42.68 million from only $13.46 million in the same period last year.

SoundHound AI, Inc. (NASDAQ:SOUN) raised its full-year revenue growth outlook to a range of $160 million to $178 million, from the previous forecast of $156 million to $177 million.