1 Hyper Growth Tech Stock to Buy in 2025

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One of the top high-growth stocks on the market is a terrific buy, but that should change in 2025. The hot stock should slow down over the next few months, despite the long-term success story behind it.

As a result, I don’t touch stocks. SoundHound AI (NASDAQ:SOUN) just now. At the same time, I am prepared to exit when and if the rising stock price comes back down to earth.

What is the future of SoundHound AI and why should I watch before buying the stock again?

SoundHound AI has a bright future.

Voice commands are entering many industries. Drive-thru ordering windows and phone-based menus are already popular examples, along with in-car infotainment systems and various consumer electronics devices. The usual tech giants all have some sort of audio rendering technology, including AppleSiri and AmazonAlexa assistants.

Despite its wallet-friendly household names, the tiny SoundHound AI is winning audio control contracts everywhere. The company has long-term contracts with several car manufacturers and fast food chains. The roster is growing, and so is the SoundHound AI product portfolio. Just this month, for example, the company combined the two major technologies to enable food orders through your car stereo.

So this little company is going places and I can’t wait to see the share price rise in the long term.

But I’m not a SoundHound AI buyer right now. Instead, I sold about half of my position in December, locking in the profits from the speculative price hike.

SoundHound AI quickly built an online following through popular meme stock channels, setting the stock up for a massive price increase. The proposition referred to is a High short-seller interestforcing hidden investors to hedge their bets by short-squeezing. The move appears to have peaked over the holidays, and the stock now trades 47 percent below its upside.

I’m looking forward to rebuilding my broken SoundHound AI space, but it’s still too early. In the year In the spring of 2024, when there was little investment, the stock appeared to be overvalued Nivea Rumors of an acquisition or exclusive partnership. The hype never materialized and the SoundHound AI chart never even reached $9 during that bullish cycle.

Again, I have high hopes for SoundHound AI’s commercial prospects in the long term. Still, a lot could go wrong down the road and the stock has yet to regain the highs it has seen in recent weeks. The price-to-sales ratio increased to 110.5 on December 26. As of January 13th, it’s back to 73 times sales, but that’s still too much.

If the stock price returns to single-digit territory, SoundHound AI deserves a closer look. I am monitoring how the company’s business is developing. November’s third-quarter report showed strong revenue growth and a low net loss, and management provided big revenue guidance for the next two years.

Image source: Getty Images

So SoundHound AI’s business performance is a work in progress. The meme stock mania should die down in the next couple of months. With low prices and thin trading volume, most of the speculative action probably fell in December.

I am open to buying back the SoundHound AI shares I sold, but only if the price decline continues from about $13 to the $6-$7 range per share. Your mileage may vary of course. It’s hard to put an appropriate value on such a small but fast-growing technology stock.

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John McKee, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the Motley Fool’s board of directors. Anders Bylund It has positions at Amazon, Nvidia, and SoundHound AI. He has spots in the Motley Fool and recommends Amazon, Apple, and Nvidia. The Motley Fool has Disclosure Policy.

1 Hyper Growth Tech Stock to Buy in 2025 Originally published by The Motley Fool.