SoundHound AI Inc ( SOUN ) shares are trading higher Monday afternoon after a strong second-quarter performance and a bullish analyst rating. Here’s what investors need to know.

What To Know: The company reported record-breaking quarterly revenue of $42.7 million, a 217% year-over-year increase that beat the consensus estimate of $32.88 million. Adjusted losses were three cents per share, outperforming the Street’s expectation of a nine-cent loss.

Following the impressive results, SoundHound raised its full-year 2025 revenue forecast to a range of $160 million to $178 million, up from a previous estimate of $159.54 million.

In the earnings call, CEO Keyvan Mohajer highlighted the company’s strongest quarter ever, with significant growth across its automotive, enterprise AI and restaurant automation businesses. The company now processes over one billion queries per month and serves over 14,000 restaurant locations.

This momentum was further bolstered by an upgrade from Ladenburg Thalmann, which raised its rating on the stock from Neutral to Buy and increased its price target from $9 to $16. The combination of a strong earnings beat and a positive analyst outlook has contributed to the stock’s upward movement.

The company’s cash and equivalents stood at $230 million with no debt at the end of the quarter. Management expressed confidence in achieving adjusted EBITDA profitability by the end of 2025.

Benzinga Edge Rankings: According to Benzinga Edge rankings, which provide scores to identify strong and weak stocks, SoundHound AI ( SOUN ) exhibits exceptionally strong momentum with a score of 94.51. However, its value score is very low at 6.23. The data also indicates a positive price trend across short, medium and long-term outlooks.

Price Action: According to data from Benzinga Pro, SOUN shares are trading higher by 15.5% to $15.65 Monday morning. The stock has a 52-week high of $24.98 and a 52-week low of $4.32.

Read Also: AMC Stock Climbs After Q2 Revenue, EPS Top Estimates

How To Buy SOUN Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in SoundHound AI’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

Image: Shutterstock