SoundHound AI (NASDAQ:SOUN) Trading Up 6.8% – Should You Buy?

SoundHound AI, Inc. (NASDAQ:SOUN) traded up 6.8% during trading on Tuesday . The company traded as high as $8.48 and last traded at $8.36. 36,395,334 shares traded hands during trading, an increase of 38% from the average session volume of 26,343,264 shares. The stock had previously closed at $7.83.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Q4 results beat revenue expectations and showed strong top‑line growth: revenue of $55.06M topped consensus and full‑year 2025 revenue was a record $169M (near 100% annual growth), signaling accelerating demand. SoundHound AI, Inc. (SOUN) Reports Q4 Loss, Beats Revenue Estimates
• Positive Sentiment: Management set FY2026 revenue guidance of $225M–$260M (consensus ~$231M), which supports continued top‑line expansion and likely underpins investor optimism despite mixed margin trends. Press Release / Earnings Presentation
• Positive Sentiment: Product and footprint catalysts: launch of the Sales Assist voice agent at MWC and opening of a new innovation hub in Bengaluru expand addressable markets (retail + global engineering capacity). These moves drove earlier volume spikes and positive investor sentiment. SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight
• Neutral Sentiment: EPS in Q4 was ($0.02), in line with estimates — this met expectations but did not resolve profitability concerns. Earnings Report / Call
• Negative Sentiment: Profitability and balance‑sheet risks remain: large GAAP losses, a negative net margin (~211%) and negative ROE were highlighted by the report; analysts still expect negative FY EPS and short interest plus notable insider sales add downside pressure. SoundHound AI Reports Record Annual Revenue

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Piper Sandler lowered their price target on SoundHound AI from $15.00 to $11.00 and set a “neutral” rating on the stock in a research report on Monday, January 5th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and lifted their target price for the stock from $13.00 to $15.00 in a report on Friday, December 12th. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. Finally, Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note 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 issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $16.07.

SoundHound AI Trading Up 5.4%

The stock has a 50-day simple moving average of $9.63 and a 200 day simple moving average of $12.98. The stock has a market capitalization of $3.77 billion, a price-to-earnings ratio of -10.69 and a beta of 2.64.

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

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 32,741 shares of the stock in a transaction 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 transaction, the senior vice president directly owned 532,845 shares of the company’s stock, valued at $5,680,127.70. This represents a 5.79% 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 company’s stock in a transaction dated Friday, January 9th. The stock was sold at an average price of $12.00, for a total value of $356,112.00. Following the sale, the chief technology officer owned 544,179 shares of the company’s stock, valued at approximately $6,530,148. This trade represents a 5.17% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 460,922 shares of company stock worth $5,199,073 in the last 90 days. 9.17% of the stock is owned by corporate insiders.

Institutional Trading of SoundHound AI

A number of institutional investors and hedge funds have recently modified their holdings of SOUN. Vanguard Group Inc. increased its position in SoundHound AI by 4.4% in the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock valued at $452,313,000 after acquiring an additional 1,909,868 shares in the last quarter. Geode Capital Management LLC increased its holdings in shares of SoundHound AI by 3.1% in the fourth quarter. Geode Capital Management LLC now owns 9,180,321 shares of the company’s stock valued at $91,543,000 after purchasing an additional 273,097 shares in the last quarter. Morgan Stanley raised its position in SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the last quarter. State Street Corp raised its position in shares of SoundHound AI by 0.9% during the fourth quarter. State Street Corp now owns 8,691,235 shares of the company’s stock worth $86,652,000 after acquiring an additional 80,908 shares during the last quarter. Finally, UBS Group AG lifted its stake in shares of SoundHound AI by 77.6% during the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after acquiring an additional 2,676,707 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.