SoundHound AI (NASDAQ:SOUN) Trading Down 4.3% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price traded down 4.3% during mid-day trading on Friday . The stock traded as low as $8.53 and last traded at $8.5970. 46,808,717 shares were traded during trading, an increase of 71% from the average session volume of 27,440,648 shares. The stock had previously closed at $8.98.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Q4 revenue and annual momentum — SoundHound reported Q4 revenue up ~59% (beat expectations) and record 2025 revenue of $169M; management highlighted >100 new enterprise deals, which supports durable growth expectations. SoundHound Reports Record Annual Revenue
• Positive Sentiment: Profitability signals and cash runway — the company posted in-line/beat EPS commentary in some reports, ended the quarter with ~$248M cash, and gave an upbeat 2026 outlook, all of which reduce short-term funding risk. SoundHound Beats Revenue, Ends Quarter With $248M Cash
• Positive Sentiment: Product and global expansion — launches like the Sales Assist retail agent and a new Bengaluru innovation hub signal expanding TAM and R&D capacity to scale agentic AI in enterprise verticals. Record Revenue and Bengaluru Hub Release
• Neutral Sentiment: Guidance is mixed-to-cautious — SoundHound issued FY2026 revenue guidance in a wide $225–$260M range (management called the outlook strong), leaving room for execution risk vs. consensus. This creates model uncertainty rather than a clear buy/sell signal. Company Press Release / Guidance
• Negative Sentiment: Piper Sandler cut the price target and kept a neutral rating — the firm trimmed its PT to $9 (from $11) and reaffirmed neutral, signaling limited near-term upside and likely contributing to selling pressure. Piper Sandler Reaffirms Neutral, Lowers PT
• Negative Sentiment: Profitability and margin concerns persist — despite revenue growth, SoundHound still shows GAAP losses and negative margins, which keep skeptics focused on when the business will sustainably reach profitability. Earnings Call Highlights
• Negative Sentiment: Insider selling and sector rotation — recent disclosures show significant insider sales and broader tech/AI sector rotation into defensive assets, which amplifies downside pressure despite company-specific positives. QuiverQuant Summary (includes insider activity)

Wall Street Analysts Forecast Growth

Several analysts have recently weighed in on SOUN shares. Piper Sandler reissued 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. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $13.00 to $15.00 in a research note on Friday, December 12th. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Finally, Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, five have given 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, SoundHound AI has an average rating of “Moderate Buy” and a consensus target price of $15.79.

SoundHound AI Trading Down 4.3%

The company has a market capitalization of $3.61 billion, a PE ratio of -10.23 and a beta of 2.64. The business has a fifty day moving average of $9.63 and a 200 day moving average of $12.98.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, meeting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%. The company had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same quarter last year, the company posted ($0.05) EPS. The firm’s revenue was up 59.4% compared to the same quarter last year. Equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current fiscal year.

Insider Buying and Selling

In other SoundHound AI 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 at this link. 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 transaction of $349,019.06. Following the completion of the sale, the senior vice president directly owned 532,845 shares in the company, valued at approximately $5,680,127.70. This represents a 5.79% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 460,922 shares of company stock worth $5,199,073 over the last ninety days. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. grew its position in SoundHound AI by 83.1% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its stake in shares of SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock worth $26,000 after buying an additional 1,544 shares during the period. Danske Bank A S acquired a new position in SoundHound AI in the 3rd quarter valued at about $26,000. Advisors Asset Management Inc. increased its position in SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after acquiring an additional 1,023 shares during the period. Finally, Investors Research Corp lifted its position in SoundHound AI by 62.4% during the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after acquiring an additional 700 shares during the period. Hedge funds and other institutional investors own 19.28% of the company’s stock.

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.