Positioning no disclosures inside 60 days, left as found
Options put/call open interest 0.71, read 2026-11-02
Ethical does not pass the values gate
Price4.26 USD
Fair valueUnder review
Ethical score70.0/100
Our investment reviews on this name
2026-09-13Read Markdown7.01-39.2% to today ✓Markup gives way to Markdown after a 13% slide in 4 weeks
2026-08-13Read Markup8.02-46.9% to today Accumulation gives way to Markup after a 16% rise in 6 weeks
2026-07-02Read Accumulation6.90-38.3% to today First review on file: Accumulation
Our analytic regime reads on this name, dated and marked against the screened price. Small sample per name, and separate from the daily-framework accuracy on the Track Record page.
SoundHound AI, Inc. holds its Markdown at $4.26. The statistical read favours the sellers, held for 57 days.
As held on the ledger · 2026-11-05
Phase
Markdown · caution
Quantitative state
The statistical read favours the sellers, held for 57 days
Price at the screen
$4.26
Valuation
N/A trailing · -43.20 forward price to earnings
Values screen
FAIL· score 70.0
Beta
2.93
The Workings
Five Screens, Shown in Full
Does not pass. Revenue purity
Test
Figure
Limit
What it means
Status
Business activity
Permissible
Core business clean
Its core business isn't built on prohibited lines: no gambling, alcohol, tobacco, weapons, or interest-based lending.
Pass
Debt load
0.61%
Below 33%
Interest-bearing debt is just 0.6% of its assets, well under the one-third ceiling: it does not run on borrowed money.
Pass
Interest-bearing cash
0.00%
Below 33%
Cash held in interest-bearing accounts and securities is 0.0% of assets, under the one-third limit.
Pass
Receivables
40.81%
Below 49%
Money owed to the company is 40.8% of assets, under the 49% limit.
Pass
Revenue purity
5.80%
Below 5%
5.8% of revenue comes from non-compliant sources, over the 5% line.
Fail
Five checks adapted from AAOIFI screening standards: business activity plus four balance-sheet ratios. All five must pass for ethical clearance. Every figure is arithmetic on public accounts, not judgement.
The Ethical Read
Why It Falls Short, in Plain English
SoundHound AI, clears the business-activity screen, and its debt is near-nil. Where it falls short is income purity: around 6% of its income right now is interest earned on a large cash position, against a roughly 5% ceiling, so it does not pass. That reflects what it earns today, not the business itself, and it could clear the screen if its operating revenue grows and the interest share falls.
Read as at 2026-11-05. It updates when the underlying figures move, and past reads are kept below.
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What the Numbers Say It Is Worth
The Fair Value Range
Fair value under review. Our model's value is 2.78x the price, above our 2.00x limit. We show no fair value, margin of safety or value read built on it until the review clears.
Where our models see it going: no fair-value estimate yet, range not available, dated to the 2026-11-05 screen.
Fair value and rating are our own model estimates; the Street's range reflects third-party analyst estimates. Analysis, not advice.
The Business, in Plain Words
Voice AI that chats in cars faces brutal losses
Picture ordering coffee from your steering wheel or asking the TV what is on tonight. SoundHound builds the voice layer that makes those moments possible across cars, screens and service desks. Revenue is rising 52 percent, yet the company still loses 92 pence on every pound it brings in and posts a negative 39 percent return on equity.
The market prices the shares at 6.27 dollars against a 12 dollar fair value, and seven analysts call it a strong buy. That gap looks attractive on paper, yet the business carries an unknown moat, keeps burning cash at scale and shows no clear path to sustained profits. Opportunity rating sits at none.
Profitability remains years away at best, and any slip in growth would widen losses fast. Currency moves and competition from bigger platforms add further pressure in an unproven niche. Analysis, not advice.
Another profit measure, before interest, tax and non-cash costs: EBITDA.
The risks · The things to watch: it's a small-cap, so the share price can swing harder than the market; it already moves more than the market on an average day.
Plain-English interpretation of our own screen data. Analysis, not advice.
Where & How to Trade
SOUN trades on Nasdaq. As a listed security it is accessible through almost any international broker offering its home market. New to this, or investing from abroad? Our guide to accessing global markets covers brokers, currencies and the practical steps.
The Dated Journal · Newest First, Never Edited
Every Entry, As Written
2026-11-05Markdown$4.32+4.9%Entry 17
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 4.9% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-04Markdown$4.12-2.4%Entry 16
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 2.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-03Markdown$4.22+0.0%Entry 15
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-02Markdown$4.22+0.0%Entry 14
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-11-01Markdown$4.22-4.7%Entry 13
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 4.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-31Markdown$4.43+0.0%Entry 12
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-30Markdown$4.43+0.0%Entry 11
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 0.0% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-29Markdown$4.43-5.7%Entry 10
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 5.7% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter. It reported earnings in this window, a natural checkpoint for the thesis.
2026-10-25Markdown$4.70+3.8%Entry 9
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved up 3.8% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading oversold. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter.
2026-10-18Markdown$4.53-22.4%Entry 8
The analysis reads markdown. Price is trending lower. Sellers are in control and the prior trend has reversed. Price has moved down 22.4% since our last review. Ethical screening: FAIL. This security does not pass our values-based screening criteria. The risk-adjusted return profile shows modest positive risk-adjusted returns. Our composite framework grades it D. Technically it is sitting below its long-term trend line with momentum reading bearish. Over the past year the shares are down 31%. Our forward projection puts the odds of a 10% gain over the next month near 36%. The street (8 analysts) rates it strong buy, with a mean price target of $14. Insiders have been net sellers over the past quarter.
Each entry above was written on its date, before the outcome. A journal you can prune is not a journal.