Carve-outs are set to define global mergers and acquisitions in 2026 as boards simplify portfolios under mounting geopolitical pressures and fast-moving disruption from artificial intelligence, according to KPMG . KPMG’s Global M&A Outlook 2026, based on a survey of 700 M&A decision-makers worldwide, identifies three forces reshaping the market this year, with carve-outs emerging as the dominant t...
Carve-outs are set to define global mergers and acquisitions in 2026 as boards simplify portfolios under mounting geopolitical pressures and fast-moving disruption from artificial intelligence, according to KPMG . KPMG’s Global M&A Outlook 2026, based on a survey of 700 M&A decision-makers worldwide, identifies three forces reshaping the market this year, with carve-outs emerging as the dominant trend. According to the report reviewed by Bloomberg News, 57% of corporate dealmakers and 71% of private equity firms are open to or actively pursuing portfolio rationalization in 2026, underscoring a broad shift toward simplification, de-risking and tighter strategic focus. Central to that shift is a decisive move by corporations back to their core businesses. Geopolitical risk, fragmentation and uneven global growth are forcing boards to reassess where they operate and the risks they are willing to carry. Carve-outs are increasingly being used to create a sustainable grace period for core operations, allowing companies to shed higher-risk or harder-to-manage assets. Just over half of corporates — 51% — expect carve-out activity to rise moderately to significantly over the next 12 to 24 months, including 39% seeing a moderate increase and 11% expecting a significant rise. “Geopolitical uncertainty is now shaping boardroom decisions worldwide,” said Liz Claydon , global head of deal advisory at KPMG. Boards, she said, are taking a harder look at their portfolios to reduce risk and build resilience, with carve-outs becoming a central strategic lever rather than a tactical afterthought. PE Role Private equity is positioning itself as the natural buyer. Attracted by opportunities to refocus businesses, reinvest capital and scale operations outside large corporate structures, 55% of private equity dealmakers said they are considering acquisitions of carved-out assets. That appetite is matched by outward ambition: 71% of global buyout firms expecting higher deal volumes in 2026 ...
(RTTNews) - While reporting financial results for the fourth quarter on Wednesday, Tower Semiconductor Ltd. (TSEM) said it expects revenues for the first quarter to be $412 million, with an upward or downward range of 5 percent, reflecting revenue growth 15 percent year-over-year. On average, four analysts polled expect the company to report revenues of $408.38 million for the quarter. In Wednesda...
(RTTNews) - While reporting financial results for the fourth quarter on Wednesday, Tower Semiconductor Ltd. (TSEM) said it expects revenues for the first quarter to be $412 million, with an upward or downward range of 5 percent, reflecting revenue growth 15 percent year-over-year. On average, four analysts polled expect the company to report revenues of $408.38 million for the quarter. In Wednesday's pre-market trading, TSEM is trading on the Nasdaq at $142.03, up $5.46 or 4.00 percent. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Hercules Technology Growth Capital (Symbol: HTGC) has been named as a Top 10 dividend-paying financial stock, according to Dividend Channel , which published its most recentreport. The report noted that among shares of financial companies, HTGC displayed both attractive valuation metrics and strong profitability metrics. For example, the recent HTGC share price of $16.89 represents a price-to-book...
Hercules Technology Growth Capital (Symbol: HTGC) has been named as a Top 10 dividend-paying financial stock, according to Dividend Channel , which published its most recentreport. The report noted that among shares of financial companies, HTGC displayed both attractive valuation metrics and strong profitability metrics. For example, the recent HTGC share price of $16.89 represents a price-to-book ratio of 1.4 and an annual dividend yield of 11.13% — by comparison, the average stock in Dividend Channel's coverage universe yields 3.9% and trades at a price-to-book ratio of 2.8. The report also cited the strong quarterly dividend history at Hercules Technology Growth Capital, and favorable long-term multi-year growth rates in key fundamental data points. The report stated, ''Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research.'' The current annualized dividend paid by Hercules Technology Growth Capital is $1.88/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 02/25/2026. Below is a long-term dividend history chart for HTGC, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. 10 Top Ranked Dividend Paying Financials » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
SM Energy Co. (Symbol: SM) has been named as a Top 10 dividend stock, according the most recent Dividend Channel report. The report noted that among the coverage universe, SM shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at SM Energy Co., and favorable long-term multi-year growth rates in key fundame...
SM Energy Co. (Symbol: SM) has been named as a Top 10 dividend stock, according the most recent Dividend Channel report. The report noted that among the coverage universe, SM shares displayed both attractive valuation metrics and strong profitability metrics. The report also cited the strong quarterly dividend history at SM Energy Co., and favorable long-term multi-year growth rates in key fundamental data points. The report stated, ''Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research.'' The annualized dividend paid by SM Energy Co. is $0.8/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 12/26/2025. Below is a long-term dividend history chart for SM, which the report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. The Top 10 DividendRank'ed Stocks » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Getty Realty Corp. (Symbol: GTY) has been named as a Top 10 Real Estate Investment Trust (REIT), according to Dividend Channel , which published its most recentreport. The report noted that among REITs, GTY shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent GTY share price of $31.22 represents a price-to-book ratio of 1.8 and an annual divi...
Getty Realty Corp. (Symbol: GTY) has been named as a Top 10 Real Estate Investment Trust (REIT), according to Dividend Channel , which published its most recentreport. The report noted that among REITs, GTY shares displayed both attractive valuation metrics and strong profitability metrics. For example, the recent GTY share price of $31.22 represents a price-to-book ratio of 1.8 and an annual dividend yield of 6.21% — by comparison, the average stock in Dividend Channel's coverage universe yields 3.9% and trades at a price-to-book ratio of 2.8. The report also cited the strong quarterly dividend history at Getty Realty Corp., and favorable long-term multi-year growth rates in key fundamental data points. The report stated, ''Dividend investors approaching investing from a value standpoint are generally most interested in researching the strongest most profitable companies, that also happen to be trading at an attractive valuation. That's what we aim to find using our proprietary DividendRank formula, which ranks the coverage universe based upon our various criteria for both profitability and valuation, to generate a list of the top most 'interesting' stocks, meant for investors as a source of ideas that merit further research.'' REITs hold a special place in the hearts of dividend investors, because they must distribute at least 90% of their taxable income each year to shareholders as dividends. While this can make for a high dividend yield, it also introduces some volatility and uncertainty into the level of payments from year to year — huge dividend payouts are common when a REIT turns large profits, versus smaller payouts or even periods of no dividends in times of losses. The current annualized dividend paid by Getty Realty Corp. is $1.94/share, currently paid in quarterly installments, and its most recent dividend has an upcoming ex-date of 03/26/2026. Below is a long-term dividend history chart for GTY, which the report stressed as being of key importance. Ind...
Equinix Inc (Symbol: EQIX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-averagestatistics including a strong 2.2% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the envir...
Equinix Inc (Symbol: EQIX) has been named a Top Socially Responsible Dividend Stock by Dividend Channel , signifying a stock with above-averagestatistics including a strong 2.2% yield, as well as being recognized by prominent asset managers as being a socially responsible investment, through analysis of social and environmental criteria. Environmental criteria include considerations like the environmental impact of the company's products and services, as well as the company's efficiency in terms of its use of energy and resources. Social criteria include elements such as human rights, child labor, corporate diversity, and the company's impact on society — for instance, taken into consideration would be business activities tied to weapons, gambling, tobacco, and alcohol. According to the ETF Finder at ETF Channel, Equinix Inc is a member of both the iShares MSCI USA ESG Select ETF (SUSA), making up 0.68% of the underlying holdings of the fund, as well as the iShares MSCI KLD 400 Social Index Fund ETF (DSI), where EQIX makes up 0.26% of the underlying holdings of the fund. The annualized dividend paid by Equinix Inc is $18.76/share, currently paid in quarterly installments, and its most recent dividend ex-date was on 11/19/2025. Below is a long-term dividend history chart for EQIX, which the DividendRank report stressed as being of key importance. Indeed, studying a company's past dividend history can be of good help in judging whether the most recent dividend is likely to continue. EQIX operates in the Information Technology Services sector, among companies like Palantir Technologies Inc (PLTR), and International Business Machines Corp (IBM). Top 25 Socially Responsible Dividend Stocks — Income To Feel Good About » Also see: The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
With its undulating hills and rural charm, many of us would dream of working in the Lake District village of Coniston. But not, it seems, if you are a GP. After 170 years with a dedicated family doctor, Coniston faces losing its health practice after failing to attract a single GP to the area. The village of about 800 people launched a search for a practitioner nearly a year ago when its present d...
With its undulating hills and rural charm, many of us would dream of working in the Lake District village of Coniston. But not, it seems, if you are a GP. After 170 years with a dedicated family doctor, Coniston faces losing its health practice after failing to attract a single GP to the area. The village of about 800 people launched a search for a practitioner nearly a year ago when its present doctor retired. Yet despite an advertising campaign to promote the area – boasting, among other things, seven pubs “so we’ll never run out of beer” – no one came forward. Tim Farron, the Liberal Democrat MP for Westmorland and Furness, said it would be a “tragedy” to lose the village GP for the first time since the 1850s. He said NHS leaders had “dragged [their] feet for months despite the community clamouring for action”. Farron added: “Small surgeries like this just have to exist because they cover vast rural areas and an elderly population and we’re not tolerating it closing. “Once you lose this you lose it for good, and it’s all part and parcel of the atrophying of rural communities. It’s a move that just leads to substantial Lake District villages becoming ghost towns.” Coniston is the latest victim of a chronic shortage of GPs nationwide after years of underinvestment and an ageing population with increasingly complex illness. Health leaders warned in November that the safety of millions of patients was being put at risk as surgeries were unable to recruit new doctors, leading to many managing “unsustainable” workloads and approximately 2,200 patients each. One in three GPs now choose to work in private practices – like the Coniston surgery – rather than for the NHS in a trend that has exacerbated the primary care crisis in the health service. In Coniston, it will mean the village’s mostly elderly patients will have an hour round-trip by car to the nearest full-time surgery in Ulverston. Travelling by bus would take about two hours and include an almost half-hour walk....
Seeking Alpha Seeking Alpha Seeking Alpha More on Kraft Heinz Kraft Heinz: Berkshire May Be Out Of The Equation And What That Means For Shareholders Kraft Heinz: Institutional Investors Likely Reaching A Tipping Point Kraft Heinz: A Deep Value Play With Catalysts Kraft Heinz gives mixed Q4 result Kraft Heinz faces bottom-line pressure as Q4 earnings seen falling 27%
Seeking Alpha Seeking Alpha Seeking Alpha More on Kraft Heinz Kraft Heinz: Berkshire May Be Out Of The Equation And What That Means For Shareholders Kraft Heinz: Institutional Investors Likely Reaching A Tipping Point Kraft Heinz: A Deep Value Play With Catalysts Kraft Heinz gives mixed Q4 result Kraft Heinz faces bottom-line pressure as Q4 earnings seen falling 27%
PabloMendo/iStock Editorial via Getty Images It is rare to find a holding company with a clean balance sheet, liquid assets, and a clear catalyst trading at half of its liquidation value. Usually, when a gap like this exists, it’s because the assets are trash or the management team is actively incinerating cash. Cannae Holdings ( CNNE ) has certainly faced scrutiny regarding capital allocation in ...
PabloMendo/iStock Editorial via Getty Images It is rare to find a holding company with a clean balance sheet, liquid assets, and a clear catalyst trading at half of its liquidation value. Usually, when a gap like this exists, it’s because the assets are trash or the management team is actively incinerating cash. Cannae Holdings ( CNNE ) has certainly faced scrutiny regarding capital allocation in the past. Previously, the company faced criticism for a strategy that some investors viewed as aggressive expansion rather than shareholder value creation, characterised by high external management fees and SPAC deals that failed to meet expectations. The market punished it accordingly, widening the discount to NAV to levels that implied the equity was essentially uninvestable. But looking at the setup today, I think the market is fighting the last war. The narrative has shifted, but the price hasn’t caught up. At the current price of $14.20, you are getting a portfolio of assets worth (conservatively) ~$22-24 per share. The governance structure has been overhauled and the external management fees are gone. What's more, an activist investor (Carronade) has successfully placed members on the board. This isn't a complex turnaround story where you need operating margins to double but rather simple balance sheet arbitrage. You are buying dollars for fifty cents while the company is using its own cash to buy those same dollars back. The Discount and Why It’s Closing To begin let's look at why the stock is hated. During the SPAC boom, Cannae deployed capital to back multiple vehicles (such as Paysafe and System1 ). These investments ultimately underperformed (both trade well below their $10 IPO price today) and resulted in losses for Cannae. This led to shareholder dissatisfaction regarding dilution and fee structures, causing the stock to decline. The market applied a discount, assuming that any cash on the balance sheet would inevitably be wasted on a new shiny object rather th...
In this article KHC Follow your favorite stocks CREATE FREE ACCOUNT Kraft Heinz on Wednesday said that it is pausing work on its previously announced plans to split the company. CEO Steve Cahillane, who joined Kraft Heinz in January, said in a statement that many of the company's issues are "fixable and within our control." "My number one priority is returning the business to profitable growth, wh...
In this article KHC Follow your favorite stocks CREATE FREE ACCOUNT Kraft Heinz on Wednesday said that it is pausing work on its previously announced plans to split the company. CEO Steve Cahillane, who joined Kraft Heinz in January, said in a statement that many of the company's issues are "fixable and within our control." "My number one priority is returning the business to profitable growth, which will require ensuring all resources are fully focused on the execution of our operating plan," he said. "As a result, we believe it is prudent to pause work related to the separation and we will no longer incur related dis-synergies this year." This is breaking news. Please refresh for updates.
(Capitol) Spanning 1974-77, this collection shows Wilson was capable of stunning pre-rock’n’roll homage – on the previously unheard Adult/Child – while also writing wayward songs about organic food We Gotta Groove – The Brother Studios Years, a new 73-track box set, picks up the story of the Beach Boys at a deeply peculiar juncture in their career. On the face of it, they were back on top. Their c...
(Capitol) Spanning 1974-77, this collection shows Wilson was capable of stunning pre-rock’n’roll homage – on the previously unheard Adult/Child – while also writing wayward songs about organic food We Gotta Groove – The Brother Studios Years, a new 73-track box set, picks up the story of the Beach Boys at a deeply peculiar juncture in their career. On the face of it, they were back on top. Their commercial fortunes had been revived by the huge success of some timely compilations: in the US, 1974’s Endless Summer sold 3m copies, while 20 Golden Greats became Britain’s second-biggest-selling album of 1976. Their leader Brian Wilson was apparently, miraculously, match fit after years of addiction and mental health struggles. “BRIAN IS BACK!” ran the advertising slogan for 15 Big Ones, the first Beach Boys album to bear his name as sole producer since Pet Sounds, and the first to be made at their newly founded Brother Studios. Buoyed by a media campaign that included an hour-long TV special, it duly became their most successful album of new material in 11 years. But, as ever with the Beach Boys, it was more complicated than it initially seemed. As a succession of features noted, Wilson didn’t seem to be terribly well at all. A Rolling Stone writer dispatched to meet him was startled when Wilson asked him for drugs midway through the interview, and expressed grave doubts about Eugene Landy, the controversial psychologist supposedly responsible for Wilson’s recuperation. A Melody Maker journalist who saw the Beach Boys live that summer declared that Wilson “shouldn’t be subjected to being propped up onstage”, noted that he looked visibly distressed and made no musical contribution. Rather than a triumphant return, 15 Big Ones was a hastily thrown-together mess of cover versions and wan new material, its sessions marked by disagreements, not least over whether Wilson was even capable of producing an album. The band’s members openly disparaged it on release: Dennis Wilson b...
More on Unity Software Inc Unity Software: Structural Progress Offset By Financial And Industry Hurdles (Downgrade) Unity: It's 2021 All Over Again, Downgrade To 'Sell' Unity Software Inc. (U) Discusses Game Development Innovation and Community Achievements at Unite Event Prepared Remarks Transcript Unity Software Inc Non-GAAP EPS of $0.24 beats by $0.03, revenue of $503M beats by $10.18M Unity ap...
More on Unity Software Inc Unity Software: Structural Progress Offset By Financial And Industry Hurdles (Downgrade) Unity: It's 2021 All Over Again, Downgrade To 'Sell' Unity Software Inc. (U) Discusses Game Development Innovation and Community Achievements at Unite Event Prepared Remarks Transcript Unity Software Inc Non-GAAP EPS of $0.24 beats by $0.03, revenue of $503M beats by $10.18M Unity appoints gaming and technology veteran Bernard Kim to board of directors
Jensen Investment Management Inc. raised its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 10.3% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 19,120 shares of the semiconductor company's stock after buying an additional 1,782 shares during the quarter. ...
Jensen Investment Management Inc. raised its position in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) by 10.3% during the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 19,120 shares of the semiconductor company's stock after buying an additional 1,782 shares during the quarter. Jensen Investment Management Inc.'s holdings in Taiwan Semiconductor Manufacturing were worth $5,340,000 at the end of the most recent reporting period. Get TSM alerts: Sign Up Other institutional investors have also recently made changes to their positions in the company. Massachusetts Financial Services Co. MA lifted its holdings in Taiwan Semiconductor Manufacturing by 3.6% during the third quarter. Massachusetts Financial Services Co. MA now owns 15,759,419 shares of the semiconductor company's stock valued at $4,401,448,000 after purchasing an additional 541,047 shares during the last quarter. Bank of America Corp DE increased its stake in shares of Taiwan Semiconductor Manufacturing by 0.8% in the second quarter. Bank of America Corp DE now owns 14,805,720 shares of the semiconductor company's stock worth $3,353,348,000 after purchasing an additional 115,158 shares in the last quarter. Jennison Associates LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 4.5% in the third quarter. Jennison Associates LLC now owns 12,591,542 shares of the semiconductor company's stock valued at $3,516,692,000 after purchasing an additional 544,750 shares during the period. Alliancebernstein L.P. lifted its stake in shares of Taiwan Semiconductor Manufacturing by 18.0% during the 2nd quarter. Alliancebernstein L.P. now owns 10,457,800 shares of the semiconductor company's stock valued at $2,368,587,000 after buying an additional 1,593,786 shares in the last quarter. Finally, WCM Investment Management LLC boosted its holdings in Taiwan Semiconductor Manufacturing...
MQS Management LLC bought a new stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 2,765 shares of the semiconductor company's stock, valued at approximately $772,000. Several other large investors also recently bought and sold shares of TSM. ...
MQS Management LLC bought a new stake in Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Free Report) in the third quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm bought 2,765 shares of the semiconductor company's stock, valued at approximately $772,000. Several other large investors also recently bought and sold shares of TSM. Westfuller Advisors LLC lifted its position in Taiwan Semiconductor Manufacturing by 2.2% during the third quarter. Westfuller Advisors LLC now owns 1,551 shares of the semiconductor company's stock valued at $434,000 after purchasing an additional 34 shares during the last quarter. BankPlus Wealth Management LLC raised its position in shares of Taiwan Semiconductor Manufacturing by 1.6% during the 3rd quarter. BankPlus Wealth Management LLC now owns 2,291 shares of the semiconductor company's stock valued at $640,000 after buying an additional 35 shares in the last quarter. Bank of Jackson Hole Trust lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 7.5% in the 3rd quarter. Bank of Jackson Hole Trust now owns 500 shares of the semiconductor company's stock valued at $140,000 after acquiring an additional 35 shares during the last quarter. Catalyst Private Wealth LLC lifted its holdings in shares of Taiwan Semiconductor Manufacturing by 2.8% in the 3rd quarter. Catalyst Private Wealth LLC now owns 1,407 shares of the semiconductor company's stock valued at $393,000 after acquiring an additional 38 shares during the last quarter. Finally, Venture Visionary Partners LLC grew its position in Taiwan Semiconductor Manufacturing by 1.1% in the third quarter. Venture Visionary Partners LLC now owns 3,540 shares of the semiconductor company's stock worth $989,000 after acquiring an additional 39 shares in the last quarter. Institutional investors own 16.51% of the company's stock. Get TSM alerts: Sign Up Trending Headlines about Taiwan Semiconductor Manufacturi...
bluestocking/E+ via Getty Images Key Takeaways Markets: Mid cap equities were flat to slightly positive in the fourth quarter, with the Russell Midcap Index returning 0.16%. Market performance was shaped less by macroeconomic shocks and more by an increasingly narrow set of investor preferences, particularly late in the quarter, as momentum faded in several growth-oriented areas that had driven re...
bluestocking/E+ via Getty Images Key Takeaways Markets: Mid cap equities were flat to slightly positive in the fourth quarter, with the Russell Midcap Index returning 0.16%. Market performance was shaped less by macroeconomic shocks and more by an increasingly narrow set of investor preferences, particularly late in the quarter, as momentum faded in several growth-oriented areas that had driven returns earlier in the year. Earnings reactions became more uneven, with stocks often moving sharply irrespective of underlying execution, reinforcing a market dynamic where sentiment and positioning frequently outweighed fundamentals. While certain cyclical and industrial recovery narratives stalled, dispersion beneath the surface of index-level results remained elevated, underscoring both the challenges and opportunities for active, company-specific investing. Contributors: Holdings in Light & Wonder, Expedia and Api Group. Stock selection in the consumer discretionary sector, overweight to information technology (IT) and underweight to communication services. Detractors: Holdings in Alexandria Real Estate Equities, Resideo Technologies and Chewy. Stock selection in the IT, real estate and financials sector. Outlook: As we look toward 2026, we believe the environment for mid cap equities is becoming incrementally more constructive, though uncertainty remains. The past several years have been characterized by an unusually narrow market, where a small subset of highly visible growth themes attracted the majority of investor attention, while many fundamentally sound businesses across the broader economy were overlooked. In our view, this dynamic contributed to a prolonged period of deferred investment and cautious decision making outside of a limited number of favored areas. Top Securities (% of Total) Holding Fund Casey's General Stores, Inc. ( CASY ) 3.19 APi Group Corp. ( APG ) 3.13 Clean Harbors Inc ( CLH ) 2.94 EQT Corp. ( EQT ) 2.86 Teledyne Technologies Inc. ( TDY ) 2.8...
Is the SoundHound AI sell-off a red flag or a gift? The fundamentals tell an interesting story. SoundHound AI (SOUN 6.47%) can be a polarizing stock. Despite two decades of operating history and an order backlog of more than $1 billion, the company is in the early innings of collecting revenues and probably a couple of years away from turning a profit. But SoundHound AI is a leader in a promising ...
Is the SoundHound AI sell-off a red flag or a gift? The fundamentals tell an interesting story. SoundHound AI (SOUN 6.47%) can be a polarizing stock. Despite two decades of operating history and an order backlog of more than $1 billion, the company is in the early innings of collecting revenues and probably a couple of years away from turning a profit. But SoundHound AI is a leader in a promising field. The company uses advanced artificial intelligence (AI) to help humans and machines communicate via voice commands. The long-term target market looks enormous. With fourth-quarter results due in the next few weeks, the stock has fallen more than 55% over the past four months. Here's why I see a fantastic buying opportunity in this price drop. Expand NASDAQ : SOUN SoundHound AI Today's Change ( -6.47 %) $ -0.57 Current Price $ 8.24 Key Data Points Market Cap $3.5B Day's Range $ 8.23 - $ 8.99 52wk Range $ 6.52 - $ 22.17 Volume 1.7K Avg Vol 26M Gross Margin 30.02 % Why the stock price drop makes sense (sort of) At first glance, SoundHound AI's price drop looks completely reasonable. With trailing revenue of just $148.4 million, the stock trades at 25 times sales on Feb. 8. The bottom line shows a net loss of $313.4 million over the same period and the company is burning more cash than it generates. But that's not the whole story. SoundHound AI has genuine momentum in a market that barely exists yet. You know that moment when you're trying to navigate a phone-based menu system and the robot voice makes you want to throw your phone? SoundHound is trying to fix that. Its AI actually understands how humans talk; not just keywords, but natural-sounding conversational speech. Quick and accurate processing is a key part of this experience, as people often get frustrated dealing with long periods of silence. And businesses are buying in. Hamburger chain Five Guys just renewed their partnership after SoundHound AI's system handled over a million customer orders. Toast's (TOST +2....