Growth boosts valuation multiples, but it doesn’t always last forever.
Companies that cannot maintain it are often penalized with large declines in market value, a lesson ingrained in investors who lost money in tech stocks during 2022.
SoundHound's expensive valuation could weigh on the stock in the coming year, which is why this attractively valued company could overtake its market cap.
Software is eating the world, and virtually no business is left untouched by it. In the past, the undeniable tailwinds fueling SaaS companies led to lofty valuation multiples that made it easier to raise capital.
But this was a double-edged sword as the high prices exposed them to big drawdowns, and unfortunately, the industry has tumbled by 2.6% over the last six months. This drawdown is a stark contrast from the S&P 500’s 14.3% gain.
As December 2025 dawns, the financial markets are abuzz with a familiar blend of cautious optimism and speculative fervor, particularly within the high-growth, high-risk realms of technology and cryptocurrency penny stocks. Investors, ever on the hunt for the next big breakthrough, are scrutinizing these smaller-cap companies, hoping to uncover hidden
Artificial intelligence (AI) stocks have sold off significantly over the past 30 days, and while some names remain overvalued, several appear to be bargains for long-term investors.
