Shares of SoundHound AI (NASDAQ:SOUN) finished the day up by 43%, bringing the one-month return of SOUN stock to 291%. Last month, the conversational artificial intelligence (AI) company announced it had closed $25 million in preferred equity financing and reported its preliminary 2022 results. The preferred equity will be convertible into common stock under certain circumstances, such as an automatic conversion on or after the one-year anniversary conditional to certain price conditions.
SoundHound also announced it is in the process of refinancing its current debt with a “new minimally dilutive facility.” Along with recent cost reductions, these two moves are expected to reduce operating costs by $60 million.
For 2o22, the company reported preliminary revenue of approximately $31 million, which was on the high-end of its prior guidance. Furthermore, gross margins are expected to be at least 70%. For 2023, SoundHound forecasts revenue growth of about 50% year-over-year. By the end of the year, the company expects to achieve its goal of positive GAAP operating cash flow.
Meanwhile, it was also announced last month that Airmeez, a customer engagement platform, would begin incorporating SoundHound’s voice AI into its AI-powered virtual assistants. The collaboration will help Airmeez provide a “seamless conversational AI experience” for virtual assistant users.
Along with other AI stocks, SOUN is off to a hot start for 2023. As Triple D Trading’s Dennis Dick explains, “Any company that mentions ChatGPT or something about AI, sees this rally … it’s just the hot buzzword of the month.”
5 Investors Betting Big on SOUN Stock
Tracking institutional ownership is important, as these large investors provide liquidity and support for stocks. During Q3, a total of 37 13F filers disclosed ownership of SOUN, an increase of one filer form the prior quarter. Meanwhile, the institutional put/call ratio sits at a low 0.3, down from 0.42. That’s equivalent to 119,900 puts and 394,100 calls, implying a bullish options stance.
With that in mind, let’s take a look at the largest shareholders of SoundHound:
- Global Catalyst Partners: 35.19 million shares. Global’s position is accurate as of May 2022.
- Majid Emami, Co-founder, Chief Science Officer and Senior VP, Engineering: 19.25 million shares. Emami’s stake is accurate as of April 2022.
- Keyvan Mohajer, Co-founder, President and CEO: 17.47 million shares. Mohajer’s stake is accurate as of April 2022.
- Anchorage Capital Group: 3.2 million shares. Anchorage’s position remained unchanged during Q3.
- Cota Capital Management: 2.04 million shares. Cota’s position remained unchanged during Q3.
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On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.