SoundHound AI (NASDAQ:SOUN) Trading Up 3% – Here’s What Happened

Shares of SoundHound AI, Inc. (NASDAQ:SOUN) were up 3% on Monday . The stock traded as high as $8.35 and last traded at $8.32. Approximately 25,107,599 shares changed hands during mid-day trading, a decline of 4% from the average daily volume of 26,190,830 shares. The stock had previously closed at $8.08.

SoundHound AI News Roundup

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

• Positive Sentiment: SoundHound announced it will acquire LivePerson for roughly $43M in equity value (about a 22% premium), combining its voice/agentic AI with LivePerson’s digital messaging and large enterprise footprint — management says the combined company targets a $500M revenue opportunity and a faster path to profitability. SoundHound AI To Acquire LivePerson (GlobeNewswire)
• Positive Sentiment: Wedbush commented that the LivePerson deal should strengthen SoundHound’s position in conversational AI, reinforcing the strategic rationale behind the acquisition. SoundHound AI strengthens position with LivePerson acquisition, says Wedbush
• Positive Sentiment: DA Davidson reaffirmed a “buy” rating and set a $14 price target, signaling analyst confidence and providing upside from current levels. DA Davidson Buy Rating / $14 PT (Benzinga)
• Positive Sentiment: SoundHound updated FY2027 revenue guidance to roughly $350M–$400M versus a consensus near $279M, implying materially stronger top-line expectations (supporting a narrative of accelerated scale).
• Neutral Sentiment: SoundHound set its Q1 2026 earnings release and webcast for May 7 — an important near-term event where investors will look for integration details, revenue cadence and margin trajectory. Q1 Results Date (GlobeNewswire)
• Neutral Sentiment: Analysts and outlets are parsing the LivePerson deal’s impact (scale, data synergies, and enterprise customers); some coverage frames it as a strategic unification of voice and messaging but notes execution and integration risk. Zacks analysis on LivePerson acquisition
• Negative Sentiment: Short-term volatility: the stock declined the prior session (reflecting recent swings around the deal and profit-taking), underscoring event-driven risk ahead of the integration and the May 7 results. Recent stock decline (Yahoo Finance)

Analysts Set New Price Targets

A number of research analysts have commented on SOUN shares. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. HC Wainwright dropped their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday, March 2nd. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. DA Davidson reiterated a “buy” rating and issued a $14.00 price target on shares of SoundHound AI in a report on Wednesday. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of SoundHound AI in a report on Friday, January 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 issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $14.93.

SoundHound AI Stock Performance

The firm’s 50-day moving average price is $7.43 and its 200 day moving average price is $10.94. The company has a market cap of $3.48 billion, a price-to-earnings ratio of -164.37 and a beta of 2.71.

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, meeting analysts’ consensus estimates of ($0.02). The company had revenue of $55.06 million for the quarter, compared to the consensus estimate of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.The firm’s quarterly revenue was up 59.4% on a year-over-year basis. During the same quarter in the prior year, the business posted ($0.05) EPS. As a group, equities research analysts predict that SoundHound AI, Inc. will post -0.34 EPS for the current fiscal year.

Insider Activity

In other news, COO Michael Zagorsek sold 52,968 shares of the business’s stock in a transaction dated Friday, March 20th. The stock was sold at an average price of $6.79, for a total transaction of $359,652.72. Following the completion of the transaction, the chief operating officer directly owned 1,734,491 shares in the company, valued at approximately $11,777,193.89. The trade was a 2.96% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider James Ming Hom sold 31,019 shares of the company’s stock in a transaction dated Friday, March 20th. The shares were sold at an average price of $6.79, for a total value of $210,619.01. Following the completion of the sale, the insider directly owned 772,364 shares of the company’s stock, valued at approximately $5,244,351.56. This trade represents a 3.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 307,973 shares of company stock valued at $2,091,110. Insiders own 9.17% of the company’s stock.

Institutional Investors Weigh In On SoundHound AI

Hedge funds have recently bought and sold shares of the company. Danske Bank A S bought a new stake in shares of SoundHound AI in the 3rd quarter valued at $26,000. Financial Consulate Inc. bought a new stake in shares of SoundHound AI in the 3rd quarter valued at $32,000. Sound Income Strategies LLC increased its position in shares of SoundHound AI by 37.3% in the 3rd quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock valued at $34,000 after buying an additional 575 shares in the last quarter. Northwestern Mutual Wealth Management Co. increased its position in shares of SoundHound AI by 83.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after buying an additional 1,060 shares in the last quarter. Finally, Dogwood Wealth Management LLC increased its position in shares of SoundHound AI by 152.1% in the 4th quarter. Dogwood Wealth Management LLC now owns 2,559 shares of the company’s stock valued at $26,000 after buying an additional 1,544 shares in the last quarter. 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.