Two lesser-known tech companies, SoundHound AI and AppLovin, are experiencing significant stock sell-offs despite robust revenue growth and promising future opportunities. SoundHound AI, which has seen its revenue nearly double in 2025 and is approaching adjusted EBITDA profitability, has transformed following its acquisition of Amelia, enabling it to offer a comprehensive voice-first AI platform for customer service across various industries. With its stock down nearly 40% this year, it presents a potential buying opportunity.
Similarly, AppLovin has demonstrated impressive operational performance, with a 66% revenue increase last quarter and improved gross margins. The company is expanding its Axon-2 adtech platform, reducing sales and marketing expenses, and targeting growth beyond mobile gaming into sectors like e-commerce. Despite its stock also dropping over 40% this year, its strong fundamentals suggest it may be undervalued.
For market professionals, both stocks could represent compelling entry points, given their growth trajectories and the potential for recovery in a rebounding tech sector.
Source: fool.com