SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.3% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 2.3% during mid-day trading on Friday . The company traded as low as $7.15 and last traded at $7.30. Approximately 29,436,171 shares were traded during trading, an increase of 9% from the average daily 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

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their price target for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. HC Wainwright dropped their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday, March 2nd. Piper Sandler restated a “neutral” rating and issued a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. Finally, LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Trading Down 2.3%

The company has a market capitalization of $3.07 billion, a P/E ratio of -145.97 and a beta of 2.65. The company’s fifty day moving average is $9.14 and its 200 day moving average is $12.53.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, meeting analysts’ consensus estimates of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The business had revenue of $55.06 million for the quarter, compared to analysts’ expectations of $53.88 million. During the same quarter 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 predict that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Buying and Selling at SoundHound AI

In other SoundHound AI news, COO Michael Zagorsek sold 73,406 shares of the firm’s stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $828,019.68. Following the completion of the transaction, the chief operating officer owned 1,787,459 shares in the company, valued at $20,162,537.52. This trade represents a 3.94% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Keyvan Mohajer sold 144,326 shares of the company’s stock in a transaction dated Monday, December 22nd. The shares were sold at an average price of $11.28, for a total value of $1,627,997.28. Following the sale, the chief executive officer owned 2,198,287 shares in the company, valued at approximately $24,796,677.36. This represents a 6.16% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 460,922 shares of company stock worth $5,199,073 in the last three months. 9.17% of the stock is currently owned by corporate insiders.

Institutional Trading of SoundHound AI

Several institutional investors and hedge funds have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. increased its position 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 worth $25,000 after purchasing an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC lifted its position in SoundHound AI by 152.1% during the fourth quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after purchasing an additional 1,544 shares during the last quarter. Danske Bank A S purchased a new position in SoundHound AI in the 3rd quarter worth approximately $26,000. Advisors Asset Management Inc. increased its holdings 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 buying an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management purchased a new stake in shares of SoundHound AI during the 4th quarter valued at $27,000. 19.28% of the stock is currently 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.