If you’re looking for the next two tech winners, stocks with triple-digit growth potential that could unlock in 2025, look no further than SoundHound. NASDAQ:SOUN and AppLovin NASDAQ: APP. Today, these companies are monetizing AI, creating industry-leading technology and improving their long-term growth prospects, as analysts are noticing. Business trends are enough to drive up their stock prices over time; Analyst trends and technical chart models suggest the value could be revealed in 2025.
SoundHound Gaining Momentum: Accelerating Growth through Business Success
SoundHound AI today
(As of 11:46 a.m. ET)
- 52 week range
- US$1.62
▼
$24.08
- Target price
- $12.07
SoundHound’s stock price has risen sharply in 2024 and will likely continue to rise in 2025 as its hypergrowth accelerates and MarketBeat’s consensus forecast is likely to be low. Outpacing dynamics are expected. The latest results include another customer win, which is important for growing revenue and strengthening the business, paving the way for additional customer wins in 2025.
This confirmation is important because McDonald’s is a potential customer. McDonald’s has abandoned its first attempt at an AI-enabled calling service and is reportedly testing SoundHound, which is now used in more than 10,000 restaurants, in more than 40,000 of its locations. Other restaurant chains may follow suit, and SoundHound’s technology is well suited to many industries due to the way it operates. Unlike most voice recognition systems, which convert sound into text and meaning, SoundHound technology improves accuracy and saves time by going directly from sound to meaning.
Analyst trends are creating a strong tailwind for SoundHound stock. The $12 consensus price target trails the market significantly, but does not reflect the strength of the tailwind. The third quarter 2024 earnings report had analysts at Wedbush and HC Wainwright more than doubling their price targets, pushing consensus nearly 100% in less than a week to point to a price in the mid-twenties. Both targets average $24, or 20%, above current price action at the end of December, and the revision trend is expected to continue into 2025.
Interest from sellers is another strong tailwind for this market. In 2024, institutions will buy these shares twice as fast as sellers, increasing their position to more than 20%. 20% doesn’t represent much institutional interest, but it is growing, and with a large number of shares, the tailwind it provides could last for many quarters. Technically, a move to new highs in December is very bullish for this market and suggests a move into the $30 range is likely.
The AppLovin Rollback is a Buying Opportunity You Can’t Miss
AppLovin today
(As of 11:46 a.m. ET)
- 52 week range
- $37.40
▼
$417.64
- P/E ratio
- 105.45
- Target price
- $310.71
AppLovin’s stock price fell sharply in early December when the company was delisted from the S&P 500. However, the company’s business has pushed the stock price to a record high, and inclusion in the S&P 500 could come later, making the pullback an attractive buying opportunity. 2024 results include growth in the 30% range, outperforming performance and a shift into the e-commerce industry, which is expected to deliver robust revenue growth over the next few years. E-commerce is a good fit for the AppLovin platform, which uses machine learning to serve ads to target markets.
Analysts’ reaction to this news is as optimistic as the reaction to SoundHound. Changes made after the third-quarter report raised the consensus price target by nearly 50%, sending the market to a new all-time high. At the top end, these shares are trading around $450, up about 35% from late December price action, with revisions expected to continue rising as 2025 progresses. The talk suggests that AppLovin will be one of the fastest-growing stocks in 2025 as the core business remains strong and e-commerce is gradually expanding it.
Among the important details of the price chart is the trading volume. Volume of these stocks has increased steadily over the years, reaching new highs in 2024. This indicates rising ownership, conviction and liquidity that support the uptrend. The upward trend in volume is driven in part by institutional activity, which rises along with the share price as institutions buy on dips. Another trend that is expected to continue into 2025.
Before you consider SoundHound AI, you’ll want to hear this.
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