SoundHound AI's CEO Says the Company Has a "Proven Track Record When it Comes to M&A." But Do the Numbers Really Back That Up?
Acquisitions have enabled SoundHound's business to grow tremendously in recent years, but they've come at a cost.
SoundHound AI's CEO Says the Company Has a "Proven Track Record When it Comes to M&A." But Do the Numbers Really Back That Up?
Overview
An easy way for a company to get bigger and add market share is to acquire other businesses. And many businesses rely on mergers & acquisitions (M&A) as a core part of their long-term growth strategy. But it isn't always easy to pull off, and it includes adding more employees and costs along the way.
SoundHound AI (NASDAQ: SOUN) is an example of a company that's leaned heavily on M&A. It's a small player in the voice artificial intelligence (AI) market, but it has acquired multiple companies in recent years. And in doing so, it's gotten a whole lot bigger. Its CEO believes it has things figured out when it comes to M&A. But is that really the case? After all, the stock is down more than 20% over the past year, despite the company achieving some impressive growth. Let's take a look at the numbers to see if M&A has been working well for SoundHound AI.
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Originally published at www.fool.com.
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