Predicted High-Growth Tech Company to Invest in by 2025
Planning ahead is always wise, even when it comes to the stock market. One seemingly unstoppable force right now is overrated, but come 2025, it'll surely regain its footing. I'm talking about SoundHound AI (SOUN 8.60%), a company that's racking up voice control contracts left and right.
From fast-food drive-throughs to car infotainment systems, this little player is cleverly infiltrating industries usually dominated by tech giants like Apple and Amazon. Their voice interpretation technology is even appearing in phone-based menus, and the number of automakers and fast-food chains signing long-term contracts is growing.
Just look at November's third-quarter report—robust revenue growth and lower net losses. The ambitious revenue guidance for the next two years is nothing short of impressive. But here's the catch—the stock is priced way too high.
No, I didn't buy SoundHound AI shares like some other eager investors did in a meme-stock frenzy. I sold half of my position in December, locking in my gains from the price surge. Yeah, the stock had a strong appeal due to high short-seller interest, like some speculators aiming to force bearish investors into a short squeeze. But these irrational moves don't justify the sky-high price.
Consider this: the price-to-sales ratio exceeded 110.5 on December 26. Now, it's down to only 73 times sales. Still, that's way too much for a company with high-growth expectations.
So, what do I need to see before investing again? First, the stock price needs to drop from $13 to the $6-$7 range. And as SoundHound AI's business continues to perform well, the meme-stock mania should gradually fade away.
The key takeaway? Don't let the current hype blind you to SoundHound AI's long-term potential. But remember, patience is essential in this kind of situation. That said, if you believe in its future, timely entry could be your next big move.
Investing wisely in SoundHound AI might require waiting for a more reasonable price. With the current stock price being quite high, considering an entry in the $6-$7 range could be more financially prudent. Additionally, maintaining a focus on finance and SoundHound AI's long-term growth potential is crucial while navigating the stock market.
