SoundHound AI (NASDAQ:SOUN) Shares Down 1.5% – Time to Sell?

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

Key Stories Impacting SoundHound AI

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 topic of several recent research reports. DA Davidson reaffirmed a “buy” rating and issued a $17.00 price objective on shares of SoundHound AI in a research note on Tuesday, November 18th. Wedbush restated an “outperform” rating and set a $16.00 target price on shares of SoundHound AI in a report on Thursday, September 11th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Piper Sandler dropped their price target on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a report on Monday. Finally, Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and increased their price objective for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $16.50.

SoundHound AI Price Performance

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

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

Insider Buying and Selling

In related news, insider James Ming Hom sold 42,600 shares of the company’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $480,528.00. Following the completion of the transaction, the insider directly owned 803,383 shares in the company, valued at $9,062,160.24. This represents a 5.04% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction 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 completion of the sale, the chief operating officer directly owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. This trade represents a 3.94% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 492,965 shares of company stock worth $6,140,981. 9.17% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. Swiss Life Asset Management Ltd grew its position in SoundHound AI by 67.9% during the third quarter. Swiss Life Asset Management Ltd now owns 17,001 shares of the company’s stock worth $273,000 after buying an additional 6,878 shares in the last quarter. KERR FINANCIAL PLANNING Corp bought a new stake in shares of SoundHound AI in the 3rd quarter worth approximately $354,000. CIBC Bancorp USA Inc. acquired a new stake in shares of SoundHound AI during the 3rd quarter worth approximately $628,000. WBI Investments LLC bought a new stake in shares of SoundHound AI during the third quarter valued at approximately $887,000. Finally, Captrust Financial Advisors increased its position in shares of SoundHound AI by 136.0% during the third quarter. Captrust Financial Advisors now owns 215,091 shares of the company’s stock valued at $3,459,000 after purchasing an additional 123,960 shares during the period. Institutional investors and hedge funds 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.