SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.4% – Here’s Why

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were down 1.4% on Wednesday . The company traded as low as $7.74 and last traded at $7.79. Approximately 26,041,810 shares traded hands during trading, a decline of 4% from the average daily volume of 27,020,455 shares. The stock had previously closed at $7.90.

More SoundHound AI News

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

• Positive Sentiment: Reported record 2025 results, doubled revenue to $168.9M, issued strong 2026 guidance and announced new automotive and restaurant partnerships — these operational beats and commercial traction support revenue growth expectations and justify bullish analyst models. SoundHound AI (SOUN) Valuation Check After Record 2025 Results Strong 2026 Guidance And New Partnerships
• Positive Sentiment: Bullish analyst views argue recent sell-off created a buying opportunity: Seeking Alpha and other bulls forecast continued high-growth SaaS revenue and long-term margin expansion (management targets 70%+ gross margins) that could materially lift valuation if achieved. SoundHound: Meltdown’s A Gift – Voice AI SaaS Leader Is Cheap Now
• Positive Sentiment: Analysts highlight the company’s Agentic AI / voice-first platform as a scalable engine across cars, call centers and apps — continued enterprise adoption and recurring subscription bookings underpin growth forecasts. Can SoundHound’s Agentic AI Platform Power the Next Phase of Growth?
• Neutral Sentiment: Comparisons with Amazon (AMZN) underline both opportunity and risk: SoundHound’s focused voice stack can win niche enterprise deals, but Amazon’s AWS/AI scale and ecosystem remain a material competitive overhang. This dynamic keeps upside conditional on execution. SoundHound vs. Amazon: Which AI Voice Assistant Stock Wins?
• Neutral Sentiment: Long-term upside scenarios (e.g., multi‑bag returns by 2030) are possible but require sustained ~50–60%+ CAGR revenue growth — achievable per bull cases but high execution risk. Investors should weigh growth assumptions against margin and cash‑flow timelines. SoundHound AI: Could the Stock 10X by 2030?
• Negative Sentiment: High-profile skepticism: Jim Cramer described SOUN as “one of those companies that is a meme stock,” a comment that can amplify retail-driven selling and volatility. Jim Cramer on SoundHound AI: “This Is One of Those Companies That Is a Meme Stock”
• Negative Sentiment: Broader caution in software/AI names and large historical drawdowns (articles noting shares are down materially from highs) pressure multiples; sector warning pieces and value traps narratives can keep sentiment weak until sustained proof of profitability. 3 Software Stocks with Warning Signs

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. HC Wainwright lowered their price target on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Finally, Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their price objective for the stock from $13.00 to $15.00 in a report on Friday, December 12th. One investment 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Down 2.3%

The business has a 50 day moving average price of $9.14 and a two-hundred day moving average price of $12.53. The stock has a market cap of $3.07 billion, a P/E ratio of -145.97 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, meeting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.SoundHound AI’s quarterly revenue was up 59.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted ($0.05) EPS. On average, research analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, CTO Timothy Stonehocker sold 29,676 shares of the firm’s stock in a transaction on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the sale, 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. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, SVP Majid Emami sold 32,741 shares of the stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the completion of the sale, the senior vice president directly owned 532,845 shares of the company’s stock, valued at approximately $5,680,127.70. This represents a 5.79% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is owned by insiders.

Hedge Funds Weigh In On SoundHound AI

A number of hedge funds have recently modified their holdings of the business. Danske Bank A S acquired a new stake in SoundHound AI in the third quarter valued at $26,000. Investors Research Corp grew its position in SoundHound AI by 62.4% during the third 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 period. Financial Consulate Inc. purchased a new stake in SoundHound AI during the third quarter worth approximately $32,000. Sound Income Strategies LLC boosted its position in shares of SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after buying an additional 575 shares during the period. Finally, Northwestern Mutual Wealth Management Co. grew its position in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares in the last quarter. 19.28% of the stock is currently owned by hedge funds and other 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.