If you’re looking for the next tech winners, stocks with triple-digit upside potential that could open in 2025, look no further than SoundHound NASDAQ:SOUN And Aplofen Nasdaq: Application. These companies are monetizing AI today, creating industry-leading technology, and improving their long-term growth prospects in ways that analysts are taking notice of. Business trends are enough to raise their stock prices over time; Analyst trends and technical chart patterns suggest that the value could be unlocked in 2025.
SoundHound Gains Traction: Hyper-Growth Accelerates Business Wins
SoundHound AI today
(As of 05:19 PM ET)
- 52 week range
- $1.62
▼
$24.08
- Price target
- $12.07
SoundHound’s stock price has skyrocketed in 2024 and will likely continue to rise in 2025 due to its hyper-accelerating growth, and MarketBeat’s consensus forecast is likely low. Superior performance is expected. Latest results include another client win, which is important for increasing revenue and business confirmation, paving the way for additional client wins in 2025.
Confirmation is important because McDonald’s is a potential customer. McDonald’s has canceled its first attempt at AI-powered communication services and is reportedly reviewing SoundHound, now used in more than 10,000 restaurant locations, for more than 40,000 locations. Other restaurant chains may follow suit, and SoundHound technology is a good fit for many industry sectors given how it works. Unlike most voice recognition systems, which convert sound to text to meaning, SoundHound technology improves accuracy and saves time by going directly from sound to meaning.
Analyst trends provide strong tailwinds for SoundHound stock. The consensus price target of $12 lags the market significantly but does not reflect the strength of the tailwind provided. The third-quarter 2024 earnings report caused analysts at Wedbush and HC Wainwright to double their price targets, raising the consensus nearly 100% in less than a week, suggesting a mid-$20 price point. The two targets average $24 or 20% above the current price action in late December, and the revision trend is expected to continue in 2025.
Sell-side interest is another strong tailwind for this market. In 2024, institutions will be buying this stock at double the pace from sellers, increasing their positions to more than 20%. 20% doesn’t represent much institutional interest, but it is growing, and with so much stock available, the tailwind it provides could stick around for several quarters. Technically, a move to new highs in December is very bullish for this market and indicates a potential move into the $30 range.
AppLovin’s pullback is a buying opportunity that should not be missed
Aplofin today
(As of 05:19 PM ET)
- 52 week range
- $37.40
▼
$417.64
- P/E ratio
- 103.59
- Price target
- $310.71
AppLovin’s stock price fell sharply in early December when it passed for inclusion in the S&P 500. However, the company’s business has pushed the stock price to all-time highs, and an S&P 500 inclusion could come later, making the pullback an attractive buying opportunity. Results in 2024 include 30% growth, outperformance and a move into the e-commerce industry that is expected to maintain overall revenue growth over the next few years. E-commerce is a perfect fit for AppLovin’s platform, which uses machine learning to deliver ads to target markets.
Analysts’ response to the news was as upbeat as the response to SoundHound. Revisions since the Q3 report have raised the consensus price target by nearly 50%, pushing the market to a new all-time high. The high-end range has this stock trading near $450, about 35% above the price action in late December, with revisions expected to continue to rise as 2025 progresses. The takeaway from the chatter is that AppLovin will be one of the best growth stocks in 2025 as The core business remains strong and e-commerce is increasingly adding to it.
Among the important details of the price chart is the trading volume. This stock has seen its volume steadily increase for years, reaching new highs in 2024. This signals increased ownership, ownership, and liquidity supporting the upside. The uptrend in volume is due in part to institutional activity, which rises alongside the stock price as institutions buy on the dips. Another trend that is expected to continue in 2025.
Before you consider SoundHound AI, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and SoundHound AI wasn’t on the list.
While SoundHound AI currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
Which stocks are most likely to thrive in today’s challenging market? Click the link below and we’ll send you MarketBeat’s list of ten stocks that will move in any economic environment.
