SoundHound AI Inc (SOUN) saw its stock soar over 6% in the pre-market session on Thursday, continuing a rally fueled by speculative excitement and investor optimism around the voice AI company's growth potential, despite concerns that the valuation may have gotten ahead of itself.
The surge appears to be driven primarily by investor hype and speculation surrounding SoundHound's prospects in the rapidly expanding voice technology space. While the company has secured promising deals with automakers and restaurants, and its voice AI offerings are being rapidly adopted, some analysts warn that the stock's lofty valuation, with a price-to-sales ratio of around 73 as of mid-January, suggests the market may be getting carried away.
However, analysts remain bullish on SoundHound's long-term prospects at the forefront of voice AI innovation. The company's ability to win contracts with major players and expand its product portfolio, such as the recent combination of its flagship technologies to enable in-car food ordering, has fueled investor enthusiasm and contributed to the stock's momentum.
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