SoundHound AI Stocks Surge Amid Bullish Options Activity

SoundHound AI, Inc. has drawn significant investor attention due to a surge in bullish options activity ahead of its May 8 earnings report, with call volumes far exceeding expectations and implied volatility rising sharply. Analysts are divided, with consensus ratings ranging from 'Hold' to 'Outperform' and average 12-month price targets between approximately $12 and $14, though some estimates reach as high as $26. Despite recent price target cuts by firms such as DA Davidson, optimism persists about SoundHound's growth potential, highlighted by strong recent revenue gains and a one-year stock performance up over 127%. The company reported a notable full-year revenue increase and is expected to continue revenue growth, but it still posts negative earnings per share and net margins. Analyst revisions to earnings and revenue estimates remain positive, reflecting ongoing hopes for improved profitability. However, the stock has experienced high volatility, with recent short interest rising and its price fluctuating markedly over the past year.