Investing

Wall St. 'I'm Starting to Like Soundhound (SOUN) a Lot More Right Now'

Austin Smith

Published: January 19, 2025 9:20 am

24/7 Wall St. Key Points:

• Rapidly expanding in speech artificial intelligence, SoundHound AI Inc. (NASDAQ: SOUN) is securing contracts with retail chains like Church’s Chicken and automakers like Lucid Group Inc. (NASDAQ: LCID), therefore benefiting critical growth sectors.
• Although Jim Cramer describes its recent surge as a short squeeze, the company’s strong relationships and Nvidia Corp. (NASDAQ: NVDA) support suggest to long-term potential outside speculative trading.
• SoundHound might scale dramatically where investors could gain from waiting for a fall to $15-16 before purchasing.
• As good as Soundhound may be, The Next Nvidia stocks could be even better. Click here to see why.

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Transcript

[00:00:04] Douglas McIntyre: You love SoundHound. It, to me, sometimes it seems like it’s your favorite company. So give us the latest on SoundHound.

[00:00:13] Lee Jackson: Well, I’m starting to like it even more now, and it’s simply because Jim Cramer, of all people, you know, the big move is over, you know, a big move is over. It’s it’s, it was just a short squeeze and I’m like, I didn’t, I don’t disagree with him, I’m sure a short squeeze was part of it because at one point early on, maybe a year ago, 40 percent of the float was short, but you know, we talked about the deal they did with Torchy’s tacos, which is basically a taco place in Texas and some other states, well, they signed a deal for the voice.

[00:00:50] Lee Jackson: AI recognition with churches chicken, you know, which is all over the country. And, you know, this voice recognition is getting bigger and bigger in retail simply because retail, like in the state of California, a lot of these people are having to lay people off or close their businesses because of having to pay such a high tax rate, you know, and having to pay, you know, such a high minimum wage rate, you know, 20 an hour for a high school kid.

[00:01:20] Lee Jackson: You know, flipping burgers seems like

[00:01:22] Douglas McIntyre: mean, that’s why I like companies like this is you can see a clear future for them because it isn’t just these medium sized fast food places. McDonald’s is going to have to do this.

[00:01:37] Douglas McIntyre: You,

[00:01:37] Lee Jackson: right. They already have kiosks. You know, they’ve done away with people. And so, yeah, and voice recognition. Yeah.

[00:01:44] Douglas McIntyre: these guys have to go to the next level. Because, you know, if you want a McDonald’s franchise in San Francisco, you’re paying 20 bucks,

[00:01:54] Lee Jackson: Right.

[00:01:54] Douglas McIntyre: the manager above that person’s making 25. It’s, it’s getting tough for the fast food guys to make business. So

[00:02:04] Lee Jackson: Yeah. Unless you’re here in Mississippi and you’re paying 10 bucks or, you know, 1250 or whatever they’re paying in the South. Yeah, exactly.

[00:02:13] Douglas McIntyre: you’re charging less for the hamburgers, but I like. I like this play because it ends up being a scale play.

[00:02:22] Lee Jackson: Well, right. Exactly. And, and, you know, not that Cramer’s wrong. It had a huge move, like an 800, 900 percent move over the last year. You know, and it went from like 2 to 20. Five or, you know, and has backed up since, but they’re also, they’re doing a deal with Lucid, to the, you know, the EB car company to have it installed in the car.

[00:02:44] Lee Jackson: So, you know, obviously that ultimately will tie into, self driving and, you know, self driving cars and things of that nature. But if you can get, All the fast food guys, all the car companies. I mean, right there, you, you have a huge, huge advantage over the competition. And more importantly, NVIDIA owns a ton of it.

[00:03:07] Lee Jackson: They own, I think, over a million shares.

[00:03:11] Douglas McIntyre: Well look, Jim Cramer and I have known each other since we were 20. So that’s 50 years. smart and I like him, but he’s wrong a

[00:03:20] Lee Jackson: is our guy.

[00:03:21] Douglas McIntyre: He’s wrong a lot. just because he doesn’t like a company is no reason to, you know, run out there and sell the shares. That’s, this is, these guys are ultimately the winners or not, I don’t know, but the technology itself is very promising.

[00:03:36] Lee Jackson: Yeah, it is. And again, Nvidia doesn’t have to buy their stock. If they, if they, they obviously saw something there and, and listen, you know, I mean, I met Cramer years ago when I worked at Bear Stearns and he is a smart guy and he’s made some really great calls, but he’s made some horrible calls as well, you know, and that’s just kind of like, well, we’ll forget about that one, but, you know, he is a smart guy and he’s been on wall street for a I mean, we write about him at 24 7 frequently, and he’s probably got more access than any other person, you know, that was a buy side guy and a sell side guy than anybody, because he can get in, he can get in Jamie Dimon’s office, so, he’s a smart guy, but, You know, and again, it did have a huge run.

[00:04:19] Lee Jackson: It’s simple. S. O. U. N. Maybe wait till it backs up to 15 or 16 or somewhere in that ballpark because there’s clearly a lot of hot money in it, and people are probably day trading it off of Wall Street bets and, you know, crap like that. But yeah, it is a unique technology, and there’s going to be a lot of demand going forward, I suspect.

[00:04:40] Douglas McIntyre: Yeah. Well, so the message here is, you like this company and Jim Cramer is wrong. Eh, more, you know, he’s, he’s wrong a lot of the time.

[00:04:51] Lee Jackson: Yeah, and it’s more than just a short squeeze, and I will agree with him, it clearly was, especially when they started announcing these deals, because that gets the shorts to cover fast. But yeah, I’d take a look at it, and if it backs up, maybe buy some.

[00:05:06] Douglas McIntyre: Yeah.