"The AI rally has created a fresh class of millionaires but has repeatedly lured many people into the wrong names. Some stocks look irresistible on the surface with great businesses. But all that glitter isn't gold, and your money is better off elsewhere. The stock market will not remain permanently bullish, so your focus should be on investing in the companies with the most potential for profitability in the future."
"SoundHound AI (SOUN) is a voice AI platform that can allow conversational interactions between users and devices. The voice platform can be used for various industries, with automotive being a core application. However, this is a very contested space. Companies with far deeper pockets, like , , , and OpenAI, are aggressively developing their own voice AI platforms. In the meantime, SoundHound is burning through $20-30 million in cash per quarter."
The AI rally created new millionaires while enticing many into highly speculative names that lack sustainable business fundamentals. Unsustainable AI companies often burn significant cash and lack institutional backing, risking dilution and reverse splits if hype fades. SoundHound AI provides voice-AI solutions with automotive-focused use cases but competes against much larger firms and is burning $20–30 million per quarter with roughly two years of cash on hand. SOUN trades at high forward-sales multiples while profits and growth are uncertain and expected to decelerate. CoreWeave’s model relies on large debt to buy GPUs and lease them to AI companies.
Read at 24/7 Wall St.
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