SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.3% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares fell 2.3% during mid-day trading on Friday . The company traded as low as $7.15 and last traded at $7.30. 29,436,171 shares were traded during mid-day trading, an increase of 9% from the average session volume of 26,926,219 shares. The stock had previously closed at $7.47.

SoundHound AI News Summary

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

• Positive Sentiment: Company reported record 2025 results (revenue doubled to ~$168.9M), issued strong 2026 guidance and announced new automotive and restaurant partnerships — a clear fundamental driver for growth expectations. SoundHound AI (SOUN) Valuation Check After Record 2025 Results Strong 2026 Guidance And New Partnerships
• Positive Sentiment: Bullish analysts argue the recent sell-off creates a buying opportunity: models project strong FY2026 revenue growth and eventual high gross/EBIT margins as recurring SaaS and partnerships scale. SoundHound: Meltdown’s A Gift – Voice AI SaaS Leader Is Cheap Now
• Positive Sentiment: SoundHound’s Agentic AI platform is positioned to power voice interfaces across cars, call centers and apps — a large TAM if enterprise adoption continues, supporting long-term SaaS growth. Can SoundHound’s Agentic AI Platform Power the Next Phase of Growth?
• Positive Sentiment: Recent analyst/coverage upgrades highlight the stock as a recovery play after a sharp pullback, reinforcing a value/buy-the-dip narrative for long-term holders. SoundHound: Wading In After The Crash (Upgrade)
• Neutral Sentiment: Comparisons to Amazon (AMZN) highlight both the opportunity for specialized voice AI (SoundHound) and the competitive risk from Amazon’s vast AI + AWS ecosystem — a mixed structural backdrop for future market share. SoundHound vs. Amazon: Which AI Voice Assistant Stock Wins?
• Neutral Sentiment: Long-term upside scenarios (e.g., 10x by 2030) exist but require very high multi-year CAGR assumptions — useful for bulls but demanding execution. SoundHound AI: Could the Stock 10X by 2030?
• Negative Sentiment: High-profile commentary labels SOUN a “meme stock,” which can amplify retail-driven volatility and selling pressure even when fundamentals look solid. Jim Cramer on SoundHound AI: “This Is One of Those Companies That Is a Meme Stock”
• Negative Sentiment: Multiple outlets flag deep drawdowns (stock down sharply from highs) and sector-wide valuation caution for software/AI names, which increases downside risk and may deter risk-averse investors. Down 66% From Its High: Is SoundHound AI Finally a Screaming Buy?
• Negative Sentiment: Broader software-stock warning signs and shorter-term technical weakness (30–90 day share declines vs. strong fundamentals) are weighing on sentiment and liquidity. 3 Software Stocks with Warning Signs

Analysts Set New Price Targets

Several brokerages have issued reports on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. DA Davidson set a $14.00 target price on SoundHound AI in a research note on Thursday, January 8th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their price target for the company from $13.00 to $15.00 in a research report on Friday, December 12th. Finally, HC Wainwright reduced their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research note on Monday, March 2nd. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Price Performance

The stock’s 50 day simple moving average is $9.14 and its two-hundred day simple moving average is $12.53. The firm has a market cap of $3.07 billion, a P/E ratio of -145.97 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the previous year, the firm posted ($0.05) EPS. The business’s revenue for the quarter was up 59.4% compared to the same quarter last year. Equities research analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In other news, 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 owned 1,787,459 shares in the company, valued at $20,162,537.52. This represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CTO Timothy Stonehocker sold 29,676 shares of the business’s stock in a transaction that occurred on Friday, January 9th. The stock was sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, the chief technology officer owned 544,179 shares of the company’s stock, valued at approximately $6,530,148. The trade was a 5.17% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 460,922 shares of company stock worth $5,199,073 in the last ninety days. 9.17% of the stock is currently owned by company insiders.

Institutional Trading of SoundHound AI

Institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada raised its stake in shares of SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock worth $1,301,000 after purchasing an additional 66,714 shares during the last quarter. Integrated Wealth Concepts LLC lifted its stake in SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after acquiring an additional 1,201 shares during the period. NewEdge Advisors LLC lifted its stake in SoundHound AI by 12.9% during the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after acquiring an additional 4,692 shares during the period. Goldman Sachs Group Inc. boosted its holdings in shares of SoundHound AI by 69.8% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock valued at $21,434,000 after acquiring an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of SoundHound AI by 10.1% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock worth $5,620,000 after acquiring an additional 63,398 shares during the period. Institutional investors 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.