Ross Givens Reviews: What Is the $3 AI Wonder Stock?

Who is Ross Givens and what is his “$3 AI wonder stock”?

To the uninitiated, investor Ross Givens is the guru behind The Insider Effect, a popular online course about insider trading. But more recently, he’s been teasing what he calls the “$3 AI Wonder Stock” — a mysterious tech stock said (at the time) to increase 75x in price in the coming years as part of an AI boom.  

Given the spectacular gains AI stocks have seen in recent years (ahem, Nvidia), it’s not hard to see why people find Givens’ promos so enticing. But has he found the next big thing — or is it just hype?

Here’s my bottom line: Givens is legit, and he does have a lot to offer. However, savvy investors may want to skip the $3 wonder AI stock or seek out less risky investment ideas. 

In this Ross Givens review, we’ll dig into everything Givens has to offer, including whether or not it’s worth what he’s charging and some excellent (and much less expensive) alternatives to consider, like Zen Investor.

Who is Ross Givens? Is Ross Givens Legit?

Yes, Ross Givens is legit. As a former vice president of a major investment bank, he has plenty of experience in the investing world — and has held multiple FINRA securities licenses. 

In recent years, he’s transitioned into a bit of an investment guru, with appearances on Fox Business, CNBC, and Bloomberg. He’s also an instructor and stock trader for Trader’s Agency, an investment research organization that focuses on investor education.

His area of expertise? Researching, analyzing, and making investment recommendations based on insider trading activity.

But while it’s safe to say Givens is a legitimate investment analyst, opinions on his effectiveness may vary. Whether his advice or instruction is worth the money charged for it, on the other hand, is a matter of personal opinion.

Essentially, as with all investment advisors, follow at your own risk. To see if Givens is a good fit for you, let’s explore a bit more. 

How Does Ross Givens Make Money?

In essence, by tempting investors with promos like the “$3 AI wonder stock” and then hiding the actual stock behind a paywall. 

The promos are mostly meant to entice you to sign up for Ross Givens’ and Trader’s Agency’s services, including: 

Live Action War Room: This is Givens’ monthly trading service. For $297, you get 52 top stock ideas a year, a 3-part video series on bankable stock patterns, recordings of classes, and members-only content.

Stealth Trades: For $297, this trading system gives you a heads-up about major buys in the works, as well as a seven-part video series that educates you on how to identify these so-called “Stealth Trades.” 

The Insider Effect: At $3995, this is Givens’ most expensive and comprehensive offering. It’s a more indepth course about how to follow company insiders (CEOs, directors, executives) and a way for Ross to alert people to important insider trades. It also includes weekly updates, startup materials, and a few basic tools for traders.

Ross Givens presumably makes some money from investing as well, though these educational products and access to trading ideas and VIP information or websites appear to be the primary revenue source for the company. 

No wonder Givens hopes the $3 AI wonder stock entices people.

Yet there’s also the simple question: If Ross Givens intends to profit from the “AI Wonder Stock” and is so confident with it, why would he share this information?

Why would he try to create this page and information and then sell it? If he has such a surefire way to make money with a wonder stock, wouldn’t he just focus on that?

It’s often a question that comes up when checking out analysts who focus on individual picks, and one you might want to consider as well. Nearly $4000 is a lot of money you can invest with a more affordable, system-based approach to investing, such as utilizing WallStreetZen Premium.

Unveiling the $3 AI Wonder Stock

So, what is Ross Givens’ $3 AI stock? Removing the suspense, the AI Wonder stock is Soundhound AI (NASDAQ: SOUN). It fits all of the hints and qualifications that Ross Givens had alluded to, and other experts agree on the matter. 

Now that you know what is the $3 AI wonder stock, and the mystery has been laid bare, is SOUN really a wonder stock? What is the company like? What more can we know about it?

A book can be written on any company, but key facts include:

• Primarily, the company focuses on voice AI and voice-activated products. It holds dozens of sound or voice recognition patents and seeks to create more breakthroughs.
• SOUN relies upon and thrives upon key partnerships, often including car companies such as Hyundai, Mercedes-Benz, Honda, and recently Kia. However, voice AI is also being integrated into ordering (White Castle, Oracle Food and Beverage, and others) as well as major names such as Pandora and Snap Inc.
• While it started up in 2005, it has grown significantly since then, working on natural language understanding, automatic speech recognition, and conversational intelligence. While AI has a long way to go across the board, Soundhound might be the leader in speech-related AI technologies.
• Currently, SOUN has a Zen Rating of D and a due diligence score of 21, signifying weak fundamentals (more on both of these shortly). It is a growing company that many (including Ross Givens) are optimistic about, but it is currently not profitable. It is aiming towards profitability in 2025, but that is easier said than done.

Financial Performance and Stock Activity

How has SoundHound AI performed in the past, and how has its stock price fluctuated over the last year?

Looking at the chart above, SoundHound AI’s price has been increasing rapidly over the past few months, reaching over $20 per share as of this writing.

Yet why? 

Analyst sentiment and greater hopes that SOUN will provide more details about its future plans and roadmap to profitability. It is a hope for future growth, and greater coverage of the Ross Givens $3 AI stock helped contribute to that higher price.

However, if Ross Givens is to be believed about the $3 AI Wonder Stock, the gains could be huge for SOUN and anyone that holds it, potentially leading to a high return in a short timeframe.

That being said, more stocks than not that have been touted as the next big thing have underperformed or outright failed. People remember the winners but forget the losers.

On top of that, the investment window might already have passed for anyone seeking the greatest return. Trying to get a 75x return on a stock that’s hit $20 is a bit different than one at $3, or even $6.

The idea of the AI wonder stock has hit the mainstream investing community, and that’s not necessarily a good thing for anyone hoping to get in on the ground floor.

Why Does Ross Givens Endorse the $3 AI Wonder Stock?

If so, what information does Ross Given have that the rest of the world doesn’t? He has a hypothesis and an estimate, but no sure thing, and his track record isn’t pristine enough for us to trust him implicitly when it comes to investing our money or for us to recommend investing yours in SOUN. Even insiders can get it wrong, and following them blindly won’t lead to good results.

Nonetheless, his main reasoning is insider trading patterns at the time, and hope in the potential of AI. Though the main pitch for the “$3 AI wonder stock” was a couple of years ago now. How do things look now?

Looking at the recent insider trades, there’s been a significant amount of selling, and not that much buying. We cannot know their reasons (or be certain, anyhow), but if there were strong reasons for continued price growth, we would expect to see some more insiders getting on board, if possible. After all, who wouldn’t want to multiply their money by 75x or even 4x?.

Ultimately, remember that stocks like this can pose significant risk to a portfolio, and that there is no true guarantee that SOUN is going to take off. It is entirely possible that the market sours on AI stocks, as there might be signs that monetization is harder than initially intended.

Alternatively, investors might decide the technology isn’t there yet. In such cases, investors could stand to lose out greatly.

SOUN’s Fundamentals

And there are more fundamental reasons to consider SOUN as a significant risk.

Simply looking at the fundamentals we review on WallStreetZen:

• Based on discounted cash flow modeling, it has a fair value price of $-8.65. This is lower than its actual price, which is greater than zero.

• The current stock price as of this writing is $20.43. It may be far too late for the gains talked about by Ross Givens.

• SOUN is currently not profitable. It has some cash flow issues. Specifically, a -$90M operating cash flow, and it has a 0.69 debt-to-equity ratio. Where is future funding going to come from? Unless that issue is clearly solved, it poses a significant risk for anyone investing in SOUN.
  
• Related to its cash flow issues, it reached a point in 2022 where it had to perform layoffs and it had less than $10 million in cash available. SOUN did eventually secure a loan from Atlas Credit Partners, but will it be able to do something similar if it runs into future issues?
  
• It did manage to pay off major debts previously, though it’s important to note that the company is not profitable.

Analyst Forecasts and Ratings

Additionally, we also look at analyst ratings and forecasts. As of this writing, analysts hold it at a “Buy”, but most of these ratings were before the major price increase of the last month. Similarly, price targets were high, but they’re now eclipsed by the current price.

Major notes include:

• Based on current forecasts from analysts, even the maximum forecast target is only a +1.13% increase in share price over the next 12 months.
• Analysts are optimistic that SOUN will execute their plans for profitability plan in the coming quarters.
• Daniel Ives of Wedbush notes that they’re in the early stages of capitalization and thinks SOUN will be a winner in the coming AI Revolution.

Zen Ratings Performance

Our key rating system here at WallStreetZen is Zen Ratings, which uses 115 factors (including a special AI factor to measure trends in past price changes) to determine which stocks have the most potential.

Those with a Zen Rating of “A” or “B” typically outperform the market average. Other stocks with lower ratings do not.

SOUN has a Zen Rating of “D”, indicating that it is in the bottom 20th percentile. 

WallStreetZen also breaks down each score into component scores, measuring the stock’s momentum, value, and other factors. For SOUN, none of the component scores are above average:

Concerningly, SOUN scored poorly concerning Value, Safety, and Financials, indicating a risky investment. It also was scored poorly by our advanced AI algorithms.

Other Ways to Locate High-Potential Stocks 

While Ross Givens may have his own methodology when it comes to picking stocks and there is a logic behind his endorsement of the “$3 AI Wonder Stock”, there are other and potentially better ways to locate and choose stocks with excellent potential.

One of these is Zen Investor, in which you can get specific recommendations from WallStreetZen’s own Steve Reitmeister, an incredibly experienced investor with four decades of stock market experience. After signing up, you will be privy to the latest picks, changes, and regular informational updates.

Furthermore, look into our Zen Ratings system for an additional breakdown of how a stock looks to our system. View the full page for every detail on it, but in short:

We look at a stock from multiple angles, considering things such as financials, potential value, investor sentiment, and more. Each is assigned its own rating, so that you can better understand the strengths and weaknesses of each stock, including SOUN, including other AI stocks, and including all other stocks we rate.

Something we want to specifically point out is that there is an AI component to Zen Ratings. We use an AI model to look at trends in a stocks price to determine potential future gains or losses, and the AI assigns a rating based on its findings.

In the case of both Zen Investor and Zen Ratings, we believe in long-term sustained growth over a potential 10x return that will likely never come to pass.

We don’t advise gambling with unknown quantities, and our efforts are there to help you choose stocks most likely to provide the best compounding returns.

Conclusion

The $3 AI wonder stock is SOUN, it’s not $3 anymore, and there’s little rational reason to believe it’s a wonder stock. 

As an investment opportunity from our perspective, it is simply not a good one. Its Zen Rating of D puts it near the bottom of stocks we’ve reviewed, and other options can be better for your portfolio. 

However, as with all stocks and investment opportunities, it is ultimately up to you, your risk tolerance, and what you seek from an investment.

You may want to look further into Ross Givens and his methodology. The chance is very small, but SOUN could take off and do 75x its current value, even now. It is your money to invest, so please be careful and do what you think is best.

Final Word:

While Ross Givens isn’t a scam artist and many follow do his recommendations, Ross Givens $3 ai stock (SOUN) sounds too good to be true.

It carries a great amount of risk for the simple fact that the fundamentals aren’t there. Much of the recent growth is based on investor sentiment.

Our Zen Ratings system recommends selling it. There are better options available and with WallStreetZen Premium or Zen Investor, it won’t be hard to find them.

Whatever your final choice regarding the $3 AI wonder stock, check out the details, weigh your options carefully, and check in on the news with it regularly, perhaps using our watchlist. Even if the stock is on an incline as of this writing, things can change at any time.

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