SoundHound AI (NASDAQ:SOUN) Trading Down 1.5% – Here’s Why

SoundHound AI, Inc. (NASDAQ:SOUN) shares traded down 1.5% on Wednesday . The company traded as low as $10.96 and last traded at $11.06. 22,365,762 shares traded hands during trading, a decline of 14% from the average session volume of 25,911,277 shares. The stock had previously closed at $11.23.

More SoundHound AI News

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

• Positive Sentiment: CES product launch and revenue/guidance beat: MarketBeat reports SoundHound unveiled its agentic voice platform “Amelia 7” at CES, with demos (OpenTable integration) that enable in-car transactional voice actions. The report also highlights 68% YoY Q3 revenue growth, raised guidance, ~ $269M cash runway and heavy options/call activity — all supporting bullish investor interest. Hey SoundHound—Why Is Your Stock Suddenly on Fire?
• Positive Sentiment: Major auto partner announced: TomTom and SoundHound are showcasing integrated multi-agent AI voice navigation at CES — strengthens automotive OEM traction and supports recurring/license or transactional revenue pathways in vehicles. TomTom partners with SoundHound AI to bring multi-agent AI voice navigation to CES 2026
• Positive Sentiment: Analyst/upside case: Seeking Alpha’s upgrade frames SOUN as a buy-for-speculative traders — cites accelerating revenue, guidance upside and improving technical support, arguing execution could materially re-rate the shares. SoundHound: An Opportunity For The Brave (Rating Upgrade)
• Positive Sentiment: Market recognition of TAM: A recent market report lists SoundHound among key players in the global AI voice de‑identification/voice AI market — a signal that the firm is viewed as an important player in growing regulatory/privacy-driven voice markets. Artificial Intelligence (AI) Voice De-identification Global Market Analysis Report 2025 Featuring Key Players – Microsoft, IBM, SoundHound AI, OpenAI, Axis Communications …
• Neutral Sentiment: Valuation caution: Zacks and other outlets note SOUN has rallied YTD and trades at a premium revenue multiple versus peers — analysts warn valuation leaves little room for misses even as operating momentum looks healthy. SoundHound Trades at a Premium Value: How to Play the Stock?
• Neutral Sentiment: Analyst attention vs. noise: Zacks discusses broker ratings and the typical impact of sell‑side chatter — relevant for short‑term flows but not a definitive signal on fundamentals. Brokers Suggest Investing in SoundHound AI (SOUN): Read This Before Placing a Bet
• Negative Sentiment: Piper Sandler pessimism: A recent Piper Sandler note (reported by American Banking News) issues a cautious/negative forecast for SOUN’s stock price — a reminder that some sell‑side models still see downside risk if execution or margins slip. Piper Sandler Issues Pessimistic Forecast for SoundHound AI (NASDAQ:SOUN) Stock Price
• Negative Sentiment: Recent pullback and high volatility: Several articles note a sizable pullback in recent months and warn the stock’s rich multiple and high short interest make it vulnerable to sharp moves in either direction. That raises execution and timing risk for longer‑term investors. Is SoundHound AI Stock a Buy Now?

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of analyst reports. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. Cantor Fitzgerald raised shares of SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price target for the stock from $13.00 to $15.00 in a research report on Friday, December 12th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Tuesday, October 14th. Piper Sandler lowered their price objective on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research note on Monday. Finally, DA Davidson restated a “buy” rating and set a $17.00 target price on shares of SoundHound AI in a research report on Tuesday, November 18th. Two analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $16.50.

SoundHound AI Stock Down 1.5%

The stock has a market capitalization of $4.65 billion, a price-to-earnings ratio of -13.17 and a beta of 2.65. The stock’s 50-day simple moving average is $12.30 and its 200 day simple moving average is $13.52.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, November 6th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.09) by $0.06. The company had revenue of $42.05 million during the quarter, compared to analysts’ expectations of $40.48 million. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. SoundHound AI’s quarterly revenue was up 67.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted ($0.04) earnings per share. As a group, equities research analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Buying and Selling

In other news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction on Monday, December 22nd. The stock was 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 approximately $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider James Ming Hom sold 42,600 shares of the firm’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the insider owned 803,383 shares of the company’s stock, valued at approximately $9,062,160.24. This trade represents a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 492,965 shares of company stock valued at $6,140,981. Insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

A number of institutional investors have recently modified their holdings of the stock. Sound Income Strategies LLC grew its stake in shares of SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after purchasing an additional 575 shares during the last quarter. Investors Research Corp boosted its position in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after buying an additional 700 shares during the last quarter. EP Wealth Advisors LLC increased its stake in shares of SoundHound AI by 5.3% in the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after buying an additional 706 shares during the period. Newbridge Financial Services Group Inc. raised its position in shares of SoundHound AI by 2.7% during the third 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 lifted its stake 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 valued at $200,000 after acquiring an additional 858 shares during the period. 19.28% of the stock is 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.