I've been watching SOUN for a while and I'm trying to figure out why the market is still treating this thing like it's completely dead.
The chart looks terrible 😂. I'm not going to pretend otherwise.
But then I looked at what the company is actually doing.
Q2 revenue: $61.9M, up 45% YoY.
Meanwhile, SoundHound is actually getting its technology into cars and commercial products.
Kia launched the Sorento in India with SoundHound's real-time generative AI voice assistant.
They also launched OASYS Edge, which is aimed at bringing their voice AI directly into vehicles and other devices.
And apparently there are still around 165M shares sold short, roughly 40%+ of the float depending on the source.
That's the part I don't really understand.
I completely get the bear case:
- Still losing money
- Valuation isn't exactly cheap
- Dilution has happened
- AI competition is insane
- Revenue needs to keep scaling significantly
All fair.
But if they keep turning these automotive and enterprise deals into actual recurring revenue, eventually the market has to decide whether the current valuation makes sense based on the business, rather than what the chart looked like six months ago.
The thing I'd be watching is volume + actual contract announcements.
If they announce a genuinely large OEM deployment and the stock suddenly starts moving on serious volume, that's when things could become interesting.
For now I'm just trying to understand the disconnect:
Growing revenue + real automotive deployments + \~165M shares short + stock sitting around $6.
Maybe the shorts are completely right.
What am I missing?