Does SoundHound AI's Impressive Revenue Growth Make Up for Its Rising Losses?
Companies that are growing at fast rates can make for exciting investments. The more growth they generate, the more excitement they can attract from investors along the way. SoundHound AI (NASDAQ: SOUN) offers artificial intelligence (AI) voice services that can help enhance experiences for customers in many ways, such as by improving the ordering process at drive-thrus or making it easier to ask AI chatbots questions while driving.
There's plenty of potential for SoundHound AI, which is why many investors have been bullish on its prospects, especially after learning earlier this year that Nvidia was an investor in the business. But while SoundHound AI has been growing its business at a fast rate, its losses and cash burn have also been accelerating. Should investors be worried, or could this be a solid AI stock to buy right now?
For an up-and-coming AI stock like SoundHound AI, what attracts a lot of attention from investors is its impressive growth rate. Since its sales aren't as large as they would be for a megacap stock, there's the hope that its valuation can take off if the company continues to grow its operations at a high rate.
Source Fool.com
