Cramer Rejects SoundHound: They Aren’t Making Money

Jim Cramer got a call on Mad Money from Gabe, a swing trader out of Nebraska hunting for “golden nuggets” in the 52-week low zone. Gabe wanted to know if SoundHound AI (NASDAQ:SOUN) was worth a 30 to 90 day swing. Cramer’s answer was blunt.

I don’t know. Still no made money. And it was. Look, there was a time at one point when Nvidia had a position in it and everyone got all excited about it. And you know, now I just think make some money and I’ll talk about you. But they ain’t making money so I’m in. No go on that one partner.

—Jim Cramer, Mad Money

Does the Data Back Cramer Up?

I’ve never invested, but have been following SoundHound pretty much every earnings cycle for the past two years, and Cramer’s read is hard to argue with on the fundamentals. Every single year from 2019 through 2025 shows a negative net income. That’s a seven-year streak of annual losses.

FY 2025 revenue nearly doubled to $168.92M, which is genuinely impressive. But operating cash flow came in at -$98.22M, and the company funded operations with $208.07M in equity financing, not profits. Stock-based compensation alone ran $80.6M for the full year.

The stock itself reflects the skepticism. SOUN is down about 35% year-to-date and off 21% over the past year, sitting at $6.43 against a 52-week high of $22.17.

The Nvidia Halo Is Gone

Cramer is right that Nvidia’s former position in SoundHound generated real excitement among retail investors. Nvidia (NASDAQ:NVDA | NVDA Price Prediction) is up 75% over the past year, the kind of performance that makes any association feel meaningful. But Nvidia divested that stake, and the halo faded with it.

Some Hope for The Bulls

SoundHound’s 2026 revenue guidance of $225M to $260M and a consensus analyst price target of $14.62 suggest the bull case isn’t dead. If you believe voice AI becomes essential infrastructure and SoundHound reaches profitability before its cash runs out, the story changes. But Cramer’s standard is simple: show him the money first. Until SoundHound can do that, his “no go” is a reasonable place to start your own due diligence.

For me, SoundHound is proof that we’re not in an AI bubble, at least not a broad one. If we were, folks would be calling into Cramer to ask what to do with their 900% gains on SoundHound.