SoundHound stock continues to defy valuation concerns with new Apivia deal
SoundHound AI (NASDAQ: SOUN) rallied nearly 10% this morning after announcing a strategic expansion with Apivia Courtage – a subsidiary of France-based AEMA Group.
The deal will see Apivia deploy SOUN’s Amelia 7 platform across its contact centers.
The rollout builds on a successful pilot that previously boosted productivity by 20% through automation of insurance-related queries.
Including today’s rally, SoundHound stock is trading at about 2.8x its price in early April.
Why Apivia deal is constructive for SoundHound stock
SOUN stock pushed higher on the Apivia deal today as it validates the company’s enterprise-grade AI capabilities.
Amelia 7 enables autonomous handling of complex, multi-intent customer queries, such as identity verification, contract adjustments, and financial calculations.
This marks a leap from basic chatbot functionality to full-fledged agentic reasoning – positioning SoundHound shares as leader in next-gen customer service automation.
Apivia’s decision to showcase the pilot at the Reavie conference in Cannes underscores its confidence in the platform’s scalability and robustness.
For SoundHound, this deal not only deepens its European footprint but also indicates growing demand for AI solutions that deliver measurable operational gains.
Over time, the growing presence internationally could translate to continued momentum in the AI stock.
SOUN shares remain attractive despite valuation concerns
SoundHound stock is currently going for a price-to-sales (P/S) ratio of nearly 88, which suggests gross overvaluation, given that even Nvidia is trading at about 35 only.
However, the company’s acquisition spree adds more substance to its overall growth narrative.
By absorbing complementary technologies and customer bases, SOUN is building a defensible moat in the conversational AI space, making its valuation more palatable to long-term investors.
Last month, the Nasdaq-listed firm acquired Interactions as well to expand its enterprise voice AI portfolio – unlocking cross-selling opportunities and accelerating its path to profitability.
Analysts like Scott Buck at HC Wainwright remain constructive on SOUN shares despite valuation concerns, citing the firm’s potential to turn profitable by as early as the end of 2025.
Why else is SoundHound worth a long-term investment
Investors should note that SoundHound’s aggressive acquisitions have already started reflecting in its financials.
In Q2, the voice AI firm more than tripled its revenue on a year-on-year basis to $42.7 million.
SOUN’s artificial intelligence agents are now deployed across restaurants (including Red Lobster), insurance firms, and telecoms – showcasing versatility across industries.
Its proprietary speech recognition and natural language understanding technology continues to outperform peers in latency and accuracy.
Meanwhile, the firm’s Agentic+ framework blends large language models with deterministic flows and human escalation, offering a hybrid approach that appeals to enterprise clients.
With global AI adoption accelerating and SoundHound’s footprint expanding, the company is well-positioned to capture meaningful share in a multi-billion-dollar market.
For investors willing to look past short-term volatility, SoundHound shares offer compelling long-term growth story.
The post SoundHound stock continues to defy valuation concerns with new Apivia deal appeared first on Invezz
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SoundHound stock continues to defy valuation concerns with new Apivia deal
SoundHound AI (NASDAQ: SOUN) rallied nearly 10% this morning after announcing a strategic expansion with Apivia Courtage – a subsidiary of France-based AEMA Group.
The deal will see Apivia deploy SOUN’s Amelia 7 platform across its contact centers.
The rollout builds on a successful pilot that previously boosted productivity by 20% through automation of insurance-related queries.
Including today’s rally, SoundHound stock is trading at about 2.8x its price in early April.
Why Apivia deal is constructive for SoundHound stock
SOUN stock pushed higher on the Apivia deal today as it validates the company’s enterprise-grade AI capabilities.
Amelia 7 enables autonomous handling of complex, multi-intent customer queries, such as identity verification, contract adjustments, and financial calculations.
This marks a leap from basic chatbot functionality to full-fledged agentic reasoning – positioning SoundHound shares as leader in next-gen customer service automation.
Apivia’s decision to showcase the pilot at the Reavie conference in Cannes underscores its confidence in the platform’s scalability and robustness.
For SoundHound, this deal not only deepens its European footprint but also indicates growing demand for AI solutions that deliver measurable operational gains.
Over time, the growing presence internationally could translate to continued momentum in the AI stock.
SOUN shares remain attractive despite valuation concerns
SoundHound stock is currently going for a price-to-sales (P/S) ratio of nearly 88, which suggests gross overvaluation, given that even Nvidia is trading at about 35 only.
However, the company’s acquisition spree adds more substance to its overall growth narrative.
By absorbing complementary technologies and customer bases, SOUN is building a defensible moat in the conversational AI space, making its valuation more palatable to long-term investors.
Last month, the Nasdaq-listed firm acquired Interactions as well to expand its enterprise voice AI portfolio – unlocking cross-selling opportunities and accelerating its path to profitability.
Analysts like Scott Buck at HC Wainwright remain constructive on SOUN shares despite valuation concerns, citing the firm’s potential to turn profitable by as early as the end of 2025.
Why else is SoundHound worth a long-term investment
Investors should note that SoundHound’s aggressive acquisitions have already started reflecting in its financials.
In Q2, the voice AI firm more than tripled its revenue on a year-on-year basis to $42.7 million.
SOUN’s artificial intelligence agents are now deployed across restaurants (including Red Lobster), insurance firms, and telecoms – showcasing versatility across industries.
Its proprietary speech recognition and natural language understanding technology continues to outperform peers in latency and accuracy.
Meanwhile, the firm’s Agentic+ framework blends large language models with deterministic flows and human escalation, offering a hybrid approach that appeals to enterprise clients.
With global AI adoption accelerating and SoundHound’s footprint expanding, the company is well-positioned to capture meaningful share in a multi-billion-dollar market.
For investors willing to look past short-term volatility, SoundHound shares offer compelling long-term growth story.
The post SoundHound stock continues to defy valuation concerns with new Apivia deal appeared first on Invezz
Read More
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