SoundHound AI (NASDAQ:SOUN) Shares Down 4.6% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares dropped 4.6% on Tuesday . The company traded as low as $7.85 and last traded at $8.06. Approximately 28,333,142 shares traded hands during mid-day trading, an increase of 1% from the average daily volume of 27,981,354 shares. The stock had previously closed at $8.45.

Key SoundHound AI News

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

• Positive Sentiment: Several analysts turned bullish after SoundHound delivered its sixth straight earnings beat, with 24/7 Wall St. saying its model implies significant upside from current levels. We’re Bullish on SoundHound With Six Straight Earnings Beats
• Positive Sentiment: SoundHound’s OASYS platform and broader agentic AI strategy are drawing interest because they could help the company scale its voice AI products across more channels and customers. Can SoundHound’s OASYS Platform Redefine Agentic AI Worldwide?
• Positive Sentiment: Recent coverage highlights strong revenue growth of about 52% last quarter, which reinforces the company’s growth story and helps explain why investors continue to watch the stock closely. Investors Heavily Search SoundHound AI, Inc. (SOUN): Here is What You Need to Know
• Neutral Sentiment: The stock has been volatile, with some reports noting a sharp recent decline even after a strong monthly rebound, suggesting trading may be driven by fast-moving sentiment rather than fundamentals alone. Assessing SoundHound AI (SOUN) Valuation After A Volatile Share Price Performance
• Negative Sentiment: Despite revenue growth, shares fell after earnings as investors were not satisfied with profitability, and the company remains unprofitable with ongoing cash burn and balance-sheet concerns. SoundHound AI Stock Falls After Earnings: Should You Buy the Dip?
• Negative Sentiment: One report also noted increased short interest activity, which can signal that some traders are betting against the stock or expecting continued volatility. SoundHound AI shares sink 11.5% despite revenue surge

Analyst Ratings Changes

SOUN has been the topic of a number of research reports. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research note on Wednesday, May 6th. DA Davidson reaffirmed a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a research note on Wednesday, April 22nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. HC Wainwright cut their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. Finally, Piper Sandler reaffirmed a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. One research analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Down 4.6%

The company has a market capitalization of $3.41 billion, a price-to-earnings ratio of -17.15 and a beta of 2.58. The stock’s fifty day moving average price is $7.57 and its 200-day moving average price is $10.04.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings data on Thursday, May 7th. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.05) by ($0.01). SoundHound AI had a negative net margin of 91.84% and a negative return on equity of 41.46%. The business had revenue of $44.20 million during the quarter, compared to analyst estimates of $42.56 million. During the same quarter last year, the business earned ($0.06) earnings per share. SoundHound AI’s revenue for the quarter was up 51.7% on a year-over-year basis. Analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current year.

Insider Buying and Selling

In other news, insider James Ming Hom sold 31,019 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the sale, the insider directly owned 772,364 shares in the company, valued at $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of SoundHound AI stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the sale, the chief financial officer owned 1,661,121 shares in the company, valued at $11,279,011.59. This trade represents a 2.58% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 307,973 shares of company stock valued at $2,091,110 over the last ninety days. Insiders own 8.84% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently added to or reduced their stakes in the company. Vanguard Group Inc. increased its holdings in SoundHound AI by 4.4% during the fourth quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after buying an additional 1,909,868 shares during the last quarter. Geode Capital Management LLC increased its holdings in SoundHound AI by 3.1% during the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock worth $91,543,000 after buying an additional 273,097 shares during the last quarter. Morgan Stanley increased its holdings in SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after buying an additional 2,917,280 shares during the last quarter. State Street Corp increased its holdings in SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after buying an additional 80,908 shares during the last quarter. Finally, UBS Group AG increased its holdings in SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after buying an additional 2,676,707 shares during the last quarter. 19.28% of the stock is currently owned by institutional investors and hedge funds.

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.