SoundHound AI (NASDAQ:SOUN) Stock Price Up 2.1% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price traded up 2.1% during trading on Wednesday . The company traded as high as $8.84 and last traded at $8.5350. 30,391,339 shares changed hands during trading, an increase of 15% from the average session volume of 26,455,744 shares. The stock had previously closed at $8.36.

Key Headlines Impacting SoundHound AI

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

• Positive Sentiment: Revenue beat and strong growth — Q4 revenue rose ~59% year‑over‑year to $55.06M, topping Street estimates and contributing to record annual revenue of $169M. This headline growth is the primary bullish driver for the stock. GlobeNewswire: Press Release
• Positive Sentiment: Strong cash position — company reported ending the quarter with about $248M in cash, supporting execution of product rollouts and R&D as it scales agentic AI for enterprise customers. Benzinga: Cash / Results
• Positive Sentiment: Product and expansion catalysts — company launched a “Sales Assist” retail voice agent and opened a new innovation hub in Bengaluru to accelerate agentic AI development, moves that expand TAM and execution capacity. Yahoo Finance: Bengaluru hub
• Neutral Sentiment: EPS and margins — reported EPS roughly in line with consensus (company reported ($0.02) EPS / in‑line with estimates), while GAAP and non‑GAAP losses persist; investors interpreted the EPS print as neither a clear beat nor a cure for ongoing profitability concerns. Zacks: Q4 recap
• Negative Sentiment: Analyst reaction: Piper Sandler cut its price target to $9 (from $11) and kept a “neutral” rating — the lower target and lack of an upgrade reduce near‑term upside expectations and likely weighed on the stock. Benzinga / TickerReport: Piper Sandler update
• Negative Sentiment: Profitability & guidance ambiguity — despite revenue beats, the company still reports negative margins and a FY‑2026 revenue guide range ($225M–$260M) that leaves room for investor concern vs. consensus; rising expenses and continued losses keep sentiment cautious. Company: Q4 presentation / press release

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Zacks Research raised SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their target price for the company from $13.00 to $15.00 in a research report on Friday, December 12th. DA Davidson set a $14.00 price target on SoundHound AI in a research report on Thursday, January 8th. Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, SoundHound AI presently has a consensus rating of “Moderate Buy” and a consensus price target of $15.79.

SoundHound AI Trading Down 4.3%

The firm has a 50-day simple moving average of $9.58 and a 200-day simple moving average of $12.93. The firm has a market cap of $3.61 billion, a P/E ratio of -171.91 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.82% and a negative net margin of 8.71%.The firm had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the prior year, the business posted ($0.05) EPS. The firm’s quarterly revenue was up 59.4% on a year-over-year basis. Research analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling at SoundHound AI

In related 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 transaction of $1,627,997.28. Following the completion of the transaction, the chief executive officer owned 2,198,287 shares in the company, valued at $24,796,677.36. The trade was a 6.16% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO Michael Zagorsek sold 73,406 shares of the 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 directly owned 1,787,459 shares of the company’s stock, valued at $20,162,537.52. The trade was a 3.94% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 460,922 shares of company stock valued at $5,199,073. 9.17% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On SoundHound AI

A number of large investors have recently made changes to their positions in the business. Y Intercept Hong Kong Ltd acquired a new stake in SoundHound AI during the 2nd quarter worth about $3,696,000. Kieckhefer Group LLC boosted its stake in shares of SoundHound AI by 47.2% in the third quarter. Kieckhefer Group LLC now owns 259,000 shares of the company’s stock worth $4,165,000 after buying an additional 83,000 shares during the last quarter. Osaic Holdings Inc. grew its holdings in SoundHound AI by 14.0% during the second quarter. Osaic Holdings Inc. now owns 498,691 shares of the company’s stock worth $5,351,000 after acquiring an additional 61,212 shares during the period. Sigma Planning Corp raised its position in SoundHound AI by 238.1% during the second quarter. Sigma Planning Corp now owns 106,661 shares of the company’s stock valued at $1,144,000 after acquiring an additional 75,113 shares in the last quarter. Finally, Mirae Asset Global Investments Co. Ltd. lifted its holdings in SoundHound AI by 252.8% in the third quarter. Mirae Asset Global Investments Co. Ltd. now owns 218,868 shares of the company’s stock valued at $3,519,000 after acquiring an additional 156,835 shares during the period. 19.28% of the stock is owned by institutional investors and hedge funds.

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.