SoundHound's fundamentals are strong, with significant revenue growth and narrowed net losses, but the valuation is excessively high. See why SOUN is sell rated.

SoundHound AI Inc (NASDAQ:SOUN) shares are trading lower Tuesday after the company filed for a mixed shelf offering of up to $500 million.

The beginning of 2025, however, has been a much different story. As of Jan. 20, the stock has fallen more than 31% out of the gate. Whether investors are cashing out their profits from last year or are simply having second thoughts about the stock and its valuation is the big question right now.