SoundHound AI (NASDAQ:SOUN) Stock Price Down 6.9% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 6.9% during trading on Thursday . The stock traded as low as $6.65 and last traded at $6.88. Approximately 35,998,799 shares changed hands during mid-day trading, an increase of 31% from the average daily volume of 27,520,805 shares. The stock had previously closed at $7.39.

More SoundHound AI News

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

• Positive Sentiment: An analyst told media the shares could potentially double despite the CFO news, offering a bullish counterpoint that could attract speculative buying if confidence in execution returns. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: SoundHound announced a commercial win with Peet’s Coffee to deploy its Employee Assist voice agent across the U.S. store footprint — a tangible enterprise customer and validation of recurring revenue opportunities. Peet’s Coffee Partners with SoundHound AI
• Positive Sentiment: Investor commentary outlets continued to list SOUN among under-the-radar AI names with multibagger potential, which can support longer-term interest from growth-focused investors. Prediction: These 3 Under-the-Radar Artificial Intelligence (AI) Stocks Could Be Multibaggers by End of 2026
• Neutral Sentiment: The company announced an interim finance leadership plan: co?founder and former CFO James Hom will step in as interim CFO, which reduces near-term uncertainty but leaves longer-term succession questions open. SoundHound AI Announces CFO Transition
• Neutral Sentiment: Nitesh Sharan’s move to Quantinuum is confirmed — a routine executive move that explains the departure but doesn’t directly alter SoundHound’s product roadmap. Nitesh Sharan Joins Quantinuum as Chief Financial Officer
• Negative Sentiment: Shares sold off intraday amid the CFO transition and broader Voice-AI competition narrative (including Nvidia moves), with coverage noting a roughly 6% drop and break below a key $7 level — technical weakness that can trigger further selling. SoundHound AI Sinks 6%: What NVIDIA’s Voice AI Bet Says About The Broader Market
• Negative Sentiment: Multiple outlets attribute today’s selling pressure directly to the CFO departure, reflecting investor sensitivity to leadership turnover at a growth-stage AI company that is still not profitable. Why Is SoundHound AI Stock Tumbling Today?

Analyst Ratings Changes

Several research firms have issued reports on SOUN. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. DA Davidson set a $14.00 price objective on SoundHound AI in a research report on Thursday, January 8th. Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. Piper Sandler reissued a “neutral” rating and issued a $9.00 target price (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. Finally, Cantor Fitzgerald raised shares of 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 report on Friday, December 12th. 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 given a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Price Performance

The firm has a 50-day moving average of $8.67 and a 200-day moving average of $12.32. The stock has a market cap of $2.75 billion, a PE ratio of -130.97 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last posted its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business had revenue of $55.06 million during the quarter, compared to the consensus estimate of $53.88 million. During the same period in the prior year, the company posted ($0.05) EPS. The firm’s revenue for the quarter 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 Activity

In other SoundHound AI news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction dated 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 transaction, the chief operating officer owned 1,787,459 shares of the company’s stock, valued at $20,162,537.52. This represents a 3.94% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Majid Emami sold 42,600 shares of SoundHound AI stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president directly owned 565,586 shares in the company, valued at $6,379,810.08. This trade represents a 7.00% 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 valued at $5,199,073 in the last quarter. Company insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Hedge funds have recently modified their holdings of the company. Sound Income Strategies LLC increased its position in SoundHound AI by 37.3% in the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after purchasing an additional 575 shares during the last quarter. Investors Research Corp lifted its position in SoundHound AI by 62.4% during the third quarter. Investors Research Corp now owns 1,822 shares of the company’s stock valued at $29,000 after purchasing an additional 700 shares during the last quarter. EP Wealth Advisors LLC lifted its position in SoundHound AI by 5.3% during the second quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock valued at $151,000 after purchasing an additional 706 shares during the last quarter. Newbridge Financial Services Group Inc. grew its stake in shares of SoundHound AI by 2.7% in the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock worth $513,000 after buying an additional 830 shares in the last quarter. Finally, Insigneo Advisory Services LLC increased its holdings in shares of SoundHound AI by 7.4% in the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock worth $200,000 after buying an additional 858 shares during the last quarter. 19.28% of the stock is owned by hedge funds and other 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.