SoundHound AI (NASDAQ:SOUN) Shares Down 4.3% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) fell 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 changed hands during trading, an increase of 71% from the average session volume of 27,440,648 shares. The stock had previously closed at $8.98.

Key SoundHound AI News

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)

Analyst Ratings Changes

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

SoundHound AI Trading Down 4.3%

The firm’s fifty day moving average price is $9.63 and its 200 day moving average price is $12.98. The firm has a market capitalization of $3.61 billion, a PE ratio of -10.23 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last posted its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). The firm 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 93.64% and a negative net margin of 211.16%.SoundHound AI’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same period last year, the company earned ($0.05) earnings per share. On average, analysts predict that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 73,406 shares of the business’s stock in a transaction that occurred 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 completion of the sale, the chief operating officer directly owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, SVP Majid Emami sold 42,600 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 value of $480,528.00. Following the transaction, the senior vice president directly owned 565,586 shares of the company’s stock, valued at $6,379,810.08. The trade was a 7.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 460,922 shares of company stock valued at $5,199,073 in the last three months. Company insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the business. Northwestern Mutual Wealth Management Co. increased its holdings in shares of 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 purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC grew its holdings in SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI in the 3rd quarter worth $26,000. Advisors Asset Management Inc. increased its stake in shares of SoundHound AI by 68.4% in the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock worth $27,000 after acquiring an additional 1,023 shares during the last quarter. Finally, Investors Research Corp raised its holdings in shares of 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. 19.28% of the stock is currently 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.