SoundHound AI (NASDAQ:SOUN) has seen its stock drop about 35% this year, even as it posted record revenue numbers. The company's revenue rose over $34 million, or 48% year-over-year, in the first six months, but much of this increase came from subscription revenue mainly driven by acquisitions in the Americas. This makes it difficult to assess the strength of its core business's organic growth.

Additionally, SoundHound AI reported an operating loss of nearly $66 million in the past two quarters, despite a $43 million boost from a change in the fair value of contingent acquisition liabilities. Analysts suggest that without clear proof of organic growth or significant progress towards profitability, the stock may continue to struggle, potentially leading to further losses, cash burn, and shareholder dilution.