SoundHound AI (NASDAQ:SOUN) Trading Down 4.3% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) fell 4.3% during mid-day trading on Wednesday . The stock traded as low as $7.58 and last traded at $7.71. 22,992,557 shares changed hands during trading, a decline of 13% from the average session volume of 26,574,857 shares. The stock had previously closed at $8.06.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: Intraday jump tied to broader voice-AI enthusiasm and “coattail” effects from Twilio-related news, which sent momentum into the voice/conversational AI group and helped lift SOUN. Why SoundHound AI Stock Jumped 17% Today
• Positive Sentiment: Unusually large options flow: traders bought ~145,384 call contracts (about +115% vs. normal), signaling aggressive bullish positioning that can amplify intraday moves and volume. (reported 5/1/2026)
• Positive Sentiment: Fundamental catalyst: Casey’s expanded rollout now covers >2,600 stores and 21M guest interactions for SoundHound’s ordering agents, and investors are watching the planned LivePerson acquisition and upcoming Q1 results — all potential drivers of faster revenue scale and deeper enterprise embedding. The Bull Case For SoundHound AI (SOUN) Could Change Following Expanded Casey’s Rollout And LivePerson Deal
• Positive Sentiment: Analyst/market optimism: coverage highlighting SOUN as a high-upside AI pick if its software expands into more industries adds to the bullish narrative and investor interest. 1 Genius AI Stock That Wall Street Thinks Could Double Your Money Within a Year
• Neutral Sentiment: Monthly performance context: a roundup comparing SoundHound with peers (Palantir, C3.ai) shows surprising April results for the AI cohort — useful context but not an immediate catalyst on its own. SoundHound, Palantir, or C3.ai: Which AI Stock Won April? The Answer Will Surprise You

Wall Street Analysts Forecast Growth

Several analysts have weighed in on the company. 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. HC Wainwright cut their price target on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research note on Monday, March 2nd. DA Davidson reiterated a “buy” rating and issued a $14.00 price objective on shares of SoundHound AI in a research report on Wednesday, April 22nd. Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research note on Monday, February 9th. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, five have issued a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, SoundHound AI has an average rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Performance

The business has a fifty day simple moving average of $7.49 and a 200 day simple moving average of $10.55. The stock has a market cap of $4.04 billion, a price-to-earnings ratio of -191.16 and a beta of 2.58.

SoundHound AI (NASDAQ:SOUN) last released its quarterly earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share for the quarter, hitting analysts’ consensus estimates of ($0.02). The company had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The business’s revenue for the quarter was up 59.4% compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.05) earnings per share. On average, equities research analysts anticipate that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Transactions at SoundHound AI

In other news, CEO Keyvan Mohajer sold 124,510 shares of SoundHound AI stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $845,422.90. Following the completion of the sale, the chief executive officer directly owned 2,073,777 shares in the company, valued at $14,080,945.83. The trade was a 5.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Nitesh Sharan sold 44,027 shares of the business’s stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $6.79, for a total transaction of $298,943.33. Following the completion of the transaction, the chief financial officer directly owned 1,661,121 shares of the company’s stock, valued at approximately $11,279,011.59. This represents a 2.58% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 307,973 shares of company stock worth $2,091,110 in the last ninety days. Company insiders own 8.84% of the company’s stock.

Institutional Trading of SoundHound AI

Several hedge funds and other institutional investors have recently bought and sold shares of SOUN. Vanguard Group Inc. lifted its stake in shares of SoundHound AI by 16.4% during the 3rd quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock worth $698,798,000 after purchasing an additional 6,132,648 shares during the period. Morgan Stanley grew its position in shares of SoundHound AI by 48.1% in the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock valued at $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG grew its position in shares of SoundHound AI by 77.6% in the fourth quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock valued at $61,059,000 after purchasing an additional 2,676,707 shares during the period. Voloridge Investment Management LLC increased its stake in SoundHound AI by 2,259.7% in the fourth quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after purchasing an additional 2,106,298 shares during the last quarter. Finally, Jump Financial LLC purchased a new position in SoundHound AI during the third quarter worth about $21,679,000. 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.