SoundHound AI (NASDAQ:SOUN) Stock Price Down 5.5% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) was down 5.5% during trading on Wednesday . The stock traded as low as $7.37 and last traded at $7.39. Approximately 20,581,752 shares were traded during trading, a decline of 25% from the average daily volume of 27,337,957 shares. The stock had previously closed at $7.82.

SoundHound AI News Roundup

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

• Positive Sentiment: An analyst told media the shares could potentially double despite the CFO news, offering a bullish counterpoint that could attract speculative buying if confidence in execution returns. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: SoundHound announced a commercial win with Peet’s Coffee to deploy its Employee Assist voice agent across the U.S. store footprint — a tangible enterprise customer and validation of recurring revenue opportunities. Peet’s Coffee Partners with SoundHound AI
• Positive Sentiment: Investor commentary outlets continued to list SOUN among under-the-radar AI names with multibagger potential, which can support longer-term interest from growth-focused investors. Prediction: These 3 Under-the-Radar Artificial Intelligence (AI) Stocks Could Be Multibaggers by End of 2026
• Neutral Sentiment: The company announced an interim finance leadership plan: co‑founder and former CFO James Hom will step in as interim CFO, which reduces near-term uncertainty but leaves longer-term succession questions open. SoundHound AI Announces CFO Transition
• Neutral Sentiment: Nitesh Sharan’s move to Quantinuum is confirmed — a routine executive move that explains the departure but doesn’t directly alter SoundHound’s product roadmap. Nitesh Sharan Joins Quantinuum as Chief Financial Officer
• Negative Sentiment: Shares sold off intraday amid the CFO transition and broader Voice-AI competition narrative (including Nvidia moves), with coverage noting a roughly 6% drop and break below a key $7 level — technical weakness that can trigger further selling. SoundHound AI Sinks 6%: What NVIDIA’s Voice AI Bet Says About The Broader Market
• Negative Sentiment: Multiple outlets attribute today’s selling pressure directly to the CFO departure, reflecting investor sensitivity to leadership turnover at a growth-stage AI company that is still not profitable. Why Is SoundHound AI Stock Tumbling Today?

Analyst Upgrades and Downgrades

A number of equities analysts recently issued reports on SOUN shares. HC Wainwright cut their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Piper Sandler restated a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. Finally, Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and lifted 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 issued a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Price Performance

The company has a 50 day simple moving average of $8.78 and a 200-day simple moving average of $12.36. The stock has a market capitalization of $2.75 billion, a P/E ratio of -130.97 and a beta of 2.65.

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

Insider Activity

In other news, CEO Keyvan Mohajer sold 144,326 shares of the business’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $1,627,997.28. Following the sale, the chief executive officer owned 2,198,287 shares of the company’s stock, valued at $24,796,677.36. The trade was 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 the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of the company’s stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the sale, the chief operating officer owned 1,787,459 shares in the company, valued at $20,162,537.52. The trade was a 3.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On SoundHound AI

A number of hedge funds and other institutional investors have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. lifted its position in shares of SoundHound AI by 83.1% during the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after acquiring an additional 1,060 shares in the last quarter. Dogwood Wealth Management LLC grew its position in shares of SoundHound AI by 152.1% in the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares in the last quarter. Danske Bank A S purchased a new position in shares of SoundHound AI in the third quarter valued at $26,000. Advisors Asset Management Inc. raised its stake in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the period. Finally, SHP Wealth Management bought a new stake in shares of SoundHound AI during the 4th quarter valued at $27,000. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

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.