SoundHound Drops 57% From Its Peak. Is SOUN Stock a Buy Now?

SoundHound (SOUN), the voice technology company behind conversational artificial intelligence (AI) solutions, has seen its stock take a beating in recent months. After soaring to a high of $24.98, the stock has plunged over 57% from that peak and is down nearly 49.4% year-to-date. While the stock is still up 158% over the past 12 months, the recent selloff has eroded significant value from its market cap.

Part of the downward pressure came from Nvidia’s (NVDA) decision to exit its position in SoundHound. That move, combined with broader macroeconomic uncertainty, spooked investors and contributed to the stock’s sharp decline. Adding to the concern is the company’s high valuation. SoundHound is currently trading at a steep price-sales (P/S) ratio of over 46.6x, implying that the market is already pricing in a lot of positives.