SoundHound AI (NASDAQ:SOUN) Shares Down 3.5% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) was down 3.5% during trading on Wednesday . The stock traded as low as $7.58 and last traded at $7.96. Approximately 30,832,346 shares were traded during mid-day trading, an increase of 12% from the average daily volume of 27,451,742 shares. The stock had previously closed at $8.25.

Key Headlines Impacting SoundHound AI

Here are the key news stories impacting SoundHound AI this week:

• Positive Sentiment: Zacks Research upgraded SoundHound from “strong sell” to “hold,” trimming bearish sentiment from a major research source and potentially reducing selling pressure. Zacks.com
• Positive Sentiment: Press coverage highlights product momentum — articles note the restaurant voice rollout and a Bridgepointe deal that could help revenue adoption in key verticals, supporting the bull case if adoption and monetization scale. Does Restaurant Voice Rollout and Bridgepointe Deal Change The Bull Case For SoundHound AI (SOUN)?
• Positive Sentiment: Several sell‑side firms still have buy/overweight ratings and the median analyst target (~$16) implies material upside from current levels, which can support a rebound if growth and margins beat expectations. SoundHound AI, Inc. to Report Fourth Quarter and Full Year 2025 Financial Results on February 26, 2026
• Neutral Sentiment: Company confirmed its 4Q/2025 earnings release and Feb. 26 conference call — this provides a clear catalyst and chance for management to address growth, margins and the Bridgepointe rollout. Timing adds short‑term volatility. SoundHound AI To Report 2025 Fourth Quarter and Full Year Financial Results, Host Conference Call and Webcast on February 26
• Neutral Sentiment: Investor attention is elevated (heavy search and above‑average volume), which can amplify moves in either direction depending on the upcoming earnings details. Investors Heavily Search SoundHound AI, Inc. (SOUN): Here is What You Need to Know
• Negative Sentiment: Zacks notes the stock plunged ~29% over the past month, signaling deteriorating sentiment and increased downside risk if revenue/margin beats miss. SoundHound Stock Down 29% in a Month: Buy the Dip or Avoid Premium?
• Negative Sentiment: Seeking Alpha argues the company remains overvalued and unprofitable with heavy M&A dependence; that critique can keep longer‑term investors cautious until profitability improves. SoundHound AI: The Software Selloff Hasn’t Made This A Bargain Yet
• Negative Sentiment: Significant insider selling (multiple executives disposing of shares) and mixed institutional moves (large blocks added and cut) add to downside risk and signal some investor de‑risking. SoundHound AI, Inc. to Report Fourth Quarter and Full Year 2025 Financial Results on February 26, 2026

Analysts Set New Price Targets

A number of equities analysts have commented on the company. HC Wainwright lifted their target price on SoundHound AI from $18.00 to $26.00 and gave the company a “buy” rating in a research note on Thursday, October 16th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday. DA Davidson set a $14.00 price target on shares of SoundHound AI in a research report on Thursday, January 8th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the company from $13.00 to $15.00 in a research note on Friday, December 12th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $16.07.

SoundHound AI Stock Down 3.5%

The business’s 50 day moving average is $10.58 and its two-hundred day moving average is $13.27. The firm has a market capitalization of $3.34 billion, a P/E ratio of -9.48 and a beta of 2.64.

Insider Activity at SoundHound AI

In other SoundHound AI news, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $1,627,997.28. Following the completion of the sale, the chief executive officer directly owned 2,198,287 shares in the company, valued at $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CTO Timothy Stonehocker sold 29,676 shares of SoundHound AI stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total value of $356,112.00. Following the transaction, the chief technology officer owned 544,179 shares in the company, valued at approximately $6,530,148. This trade represents a 5.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 462,265 shares of company stock worth $5,216,518 in the last three months. Insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sound Income Strategies LLC raised its holdings in shares of SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares in the last quarter. Investors Research Corp lifted its position in shares of SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after acquiring an additional 700 shares during the last quarter. EP Wealth Advisors LLC boosted its stake in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after acquiring an additional 706 shares in the last quarter. Newbridge Financial Services Group Inc. grew its holdings in shares of SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after acquiring an additional 830 shares during the last quarter. Finally, Insigneo Advisory Services LLC raised its position in shares of SoundHound AI by 7.4% during the third quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after purchasing an additional 858 shares during the period. 19.28% of the stock is currently owned by institutional investors.

SoundHound AI Company Profile

SoundHound AI, Inc is a voice AI and conversational intelligence company specializing in speech recognition, natural language understanding and sound identification technologies. Founded in 2005 and headquartered in Santa Clara, California, the company initially gained recognition with its music discovery app before pivoting to enterprise-grade voice AI solutions. Over the years, SoundHound AI has built a comprehensive platform that enables developers and businesses to embed conversational intelligence into a wide range of products and services.

The company’s core offering is the Houndify voice AI platform, which provides customizable speech-to-meaning technology, domain-specific natural language understanding and text-to-speech capabilities.