TLDR:
- SoundHound has a significant backlog of long-term contracts worth $682 million.
- Comparing its valuation to a hand-picked peer group suggests that the stock could be undervalued in light of its skyrocketing sales.
SoundHound AI stock has seen a recent drop in price, but the company’s strong fundamentals make it a tempting buy. With a backlog of long-term contracts and impressive sales growth, SoundHound AI’s stock shows potential for growth. By comparing the company’s valuation to its peers in the industry, it appears that the stock may be undervalued. The estimated price-to-sales ratio, taking the backlog into account, suggests that SoundHound AI could be worth more than its current market cap. With rapidly growing revenues and a strong backlog, investors may consider SoundHound AI a buying opportunity, potentially doubling the stock price in the future.