SoundHound AI’s Red-Hot Rally After Upbeat Q4 Has Stocktwits Retail Traders Looking To Buy More Stock

DA Davidson analysts said demand for SoundHound AI’s solutions remains elevated as it expands its business with leading players across the financial, healthcare, energy and other verticals.

SoundHound AI, Inc. (SOUN) stock jumped 17.81% on Friday after the conversation artificial intelligence (AI) solutions company reported a beat-and-raise fourth quarter. Notwithstanding the strong gains, retail investors appear to be convinced of further upside for the stock.

The results of a Stocktwits poll that received responses from 1,100 users on the platform showed that more than half (58%) of the retailers looked to add to their long positions. 

Nearly one-quarter (24%) chose to remain cautious, as they said they would stay long but would not add to their positions. 

On the other hand, 8% looked to reduce their exposure and 10% said they bet on potential downside in stock.

Reacting to SoundHound AI’s fourth-quarter earnings print, DA Davidson upped the price target for the stock to $13 from $9.50 and maintained a ‘Buy’ rating, TheFly reported.  

The firm noted that revenue growth continues to beat expectations and demand for SoundHound AI’s solutions remains elevated as it expands its business with leading players across the financial, healthcare, energy and other verticals.

DA Davidson sees the Amelia acquisition materially expanding SoundHound AI’s total addressable market and diversifying its business.

Sentiment among watchers on the platform was ‘extremely bullish’ (76/100) and the message volume continued to be ‘high.’

Calling SoundHound AI stock a ‘gem,’ a watcher shared a technical chart and said they would watch how the stock reacts to the $11.90 test.

Another user was bracing for a $14+ level this week.

SoundHound AI stock has fallen over 45% year-to-date after soaring 836% in 2024. It has traded in a 52-week range of $3.50-$24.98.

The TipRank-compiled consensus price target for the stock is $15.80, suggesting scope for 46% upside potential. Of the 5 analysts rating the stock, 3 have 'Buy' ratings and 2 were on the sidelines. 

For updates and corrections, email newsroom[at]stocktwits[dot]com.<