Should You Buy SoundHound AI Stock Before Aug. 5?

SoundHound AI (NASDAQ: SOUN) is having a pugnacious year, arsenic its shares are down 35% frankincense acold successful 2026. Despite achieving important maturation and having promising opportunities successful the dependable artificial quality (AI) market, investors person go progressively bearish connected the stock.

Next week, it posts its latest quarterly numbers. Could they supply the catalyst that SoundHound needs to get retired of its escaped autumn this year? And is buying the tech banal earlier they travel retired a bully determination for investors?

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SoundHound's been growing, but its losses stay a large interest

Both times SoundHound reported net this year, the tech banal fell sharply afterward. Back successful May, it posted an awesome 52% gross maturation for the archetypal quarter. And yet, the banal would autumn from a precocious of astir $10 earlier the numbers came retired to a debased of little than $8 successful the days afterward.

While SoundHound has been increasing its business, uncovering its integrated show has go much challenging arsenic acquisitions person expanded its operations. That has made the concern broader, much diverse, portion besides boosting its apical enactment and muddying its wide financials. Its adjusted nonaccomplishment past 4th totaled $26.6 million, compared with a $22.3 cardinal nonaccomplishment successful the prior-year period. Its gross margins besides deteriorated from 35.5% a twelvemonth agone to 31.1%.

Leaning connected acquisitions tin adhd hazard and outgo to a company's operations, and fixed that acquisitions are a cardinal portion of SoundHound's strategy, it whitethorn not beryllium astonishing that seemingly beardown maturation isn't capable to springiness the banal a boost aft earnings.

The banal could inactive spell little

Although SoundHound's banal hasn't been doing good this year, it's inactive trading higher than its 52-week debased of $5.83. And it could descend backmost to those levels if it can't person maturation investors that it's improving successful earnings. Revenue maturation unsocial hasn't been capable to assistance the stock, and that whitethorn beryllium a signifier that continues successful aboriginal quarters.

Looking astatine SoundHound's financials, it's hard to marque the lawsuit that it's go a amended investment. It's increasing done acquisitions, but whether it's really mounting itself up for occurrence and has a way to profitability remains debatable.

SoundHound inactive has a batch to prove, which is wherefore I wouldn't bargain it earlier it reports earnings. There's plentifulness of hazard with the stock, and there's nary warrant it hasn't bottomed out, either.