Cramer Rejects SoundHound: They Aren’t Making Money

2 hours ago 3

Jeremy Phillips

Mon, April 13, 2026 astatine 4:35 AM CDT 3 min read

Jim Cramer told a plaything trader to skip SoundHound AI (SOUN), saying the institution needs to beryllium profitability earlier he’ll urge it—they haven’t made wealth successful 7 consecutive years contempt astir doubling gross to $168.92M successful FY 2025.
SoundHound funded operations with $208.07M successful equity financing alternatively than profits, posted -$98.22M operating currency flow, and saw insiders including the CEO and CFO merchantability shares simultaneously successful March 2026 with nary insider purchases successful the three-month window.
SoundHound’s 2026 gross guidance of $225M to $260M and $14.62 expert terms people suggest a bull lawsuit exists lone if the institution reaches profitability earlier currency depletes, but Cramer’s model demands currency procreation implicit losses.
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Jim Cramer got a telephone connected Mad Money from Gabe, a plaything trader retired of Nebraska hunting for "golden nuggets" successful the 52-week debased zone. Gabe wanted to cognize if SoundHound AI (NASDAQ:SOUN) was worthy a 30 to 90 time swing. Cramer's reply was blunt.

I don't know. Still nary made money. And it was. Look, determination was a clip astatine 1 constituent erstwhile Nvidia had a presumption successful it and everyone got each excited astir it. And you know, present I conscionable deliberation marque immoderate wealth and I'll speech astir you. But they ain't making wealth truthful I'm in. No spell connected that 1 partner.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

—Jim Cramer, Mad Money

I've ne'er invested, but person been pursuing SoundHound beauteous overmuch each net rhythm for the past 2 years, and Cramer's work is hard to reason with connected the fundamentals. Every azygous twelvemonth from 2019 done 2025 shows a antagonistic nett income. That's a seven-year streak of yearly losses.

FY 2025 gross astir doubled to $168.92M, which is genuinely impressive. But operating currency travel came successful astatine -$98.22M, and the institution funded operations with $208.07M successful equity financing, not profits. Stock-based compensation unsocial ran $80.6M for the afloat year.

The banal itself reflects the skepticism. SOUN is down astir 35% year-to-date and disconnected 21% implicit the past year, sitting astatine $6.43 against a 52-week precocious of $22.17.

Cramer is close that Nvidia's erstwhile presumption successful SoundHound generated existent excitement among retail investors. Nvidia (NASDAQ:NVDA) is up 75% implicit the past year, the benignant of show that makes immoderate relation consciousness meaningful. But Nvidia divested that stake, and the halo faded with it.

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