SoundHound AI (NASDAQ:SOUN) Trading Down 4.1% – Should You Sell?

SoundHound AI, Inc. (NASDAQ:SOUN) shares were down 4.1% on Thursday . The stock traded as low as $7.43 and last traded at $7.47. Approximately 19,307,660 shares traded hands during trading, a decline of 28% from the average daily volume of 26,869,063 shares. The stock had previously closed at $7.79.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: Reported record 2025 results, doubled revenue to $168.9M, issued strong 2026 guidance and announced new automotive and restaurant partnerships — these operational beats and commercial traction support revenue growth expectations and justify bullish analyst models. SoundHound AI (SOUN) Valuation Check After Record 2025 Results Strong 2026 Guidance And New Partnerships
• Positive Sentiment: Bullish analyst views argue recent sell-off created a buying opportunity: Seeking Alpha and other bulls forecast continued high-growth SaaS revenue and long-term margin expansion (management targets 70%+ gross margins) that could materially lift valuation if achieved. SoundHound: Meltdown’s A Gift – Voice AI SaaS Leader Is Cheap Now
• Positive Sentiment: Analysts highlight the company’s Agentic AI / voice-first platform as a scalable engine across cars, call centers and apps — continued enterprise adoption and recurring subscription bookings underpin growth forecasts. Can SoundHound’s Agentic AI Platform Power the Next Phase of Growth?
• Neutral Sentiment: Comparisons with Amazon (AMZN) underline both opportunity and risk: SoundHound’s focused voice stack can win niche enterprise deals, but Amazon’s AWS/AI scale and ecosystem remain a material competitive overhang. This dynamic keeps upside conditional on execution. SoundHound vs. Amazon: Which AI Voice Assistant Stock Wins?
• Neutral Sentiment: Long-term upside scenarios (e.g., multi‑bag returns by 2030) are possible but require sustained ~50–60%+ CAGR revenue growth — achievable per bull cases but high execution risk. Investors should weigh growth assumptions against margin and cash‑flow timelines. SoundHound AI: Could the Stock 10X by 2030?
• Negative Sentiment: High-profile skepticism: Jim Cramer described SOUN as “one of those companies that is a meme stock,” a comment that can amplify retail-driven selling and volatility. Jim Cramer on SoundHound AI: “This Is One of Those Companies That Is a Meme Stock”
• Negative Sentiment: Broader caution in software/AI names and large historical drawdowns (articles noting shares are down materially from highs) pressure multiples; sector warning pieces and value traps narratives can keep sentiment weak until sustained proof of profitability. 3 Software Stocks with Warning Signs

Analysts Set New Price Targets

Several brokerages have recently commented on SOUN. HC Wainwright reduced their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a report on Monday, March 2nd. Zacks Research upgraded SoundHound AI from a “strong sell” rating to a “hold” rating in a report on Monday, February 9th. DA Davidson set a $14.00 price objective on shares of SoundHound AI in a research note on Thursday, January 8th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and raised their target price for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Finally, Piper Sandler restated a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a report on Friday, February 27th. One investment 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 company’s stock. According to data from MarketBeat.com, SoundHound AI currently has an average rating of “Moderate Buy” and an average target price of $14.93.

SoundHound AI Stock Down 2.3%

The firm has a market cap of $3.07 billion, a price-to-earnings ratio of -145.97 and a beta of 2.65. The company has a 50-day moving average price of $9.07 and a 200 day moving average price of $12.50.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) 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 firm 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 business earned ($0.05) EPS. The business’s revenue for the quarter was up 59.4% on a year-over-year basis. Equities analysts forecast that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insiders Place Their Bets

In other SoundHound AI news, SVP Majid Emami sold 32,741 shares of the company’s stock in a transaction that occurred on Friday, December 26th. The shares were sold at an average price of $10.66, for a total value of $349,019.06. Following the transaction, the senior vice president owned 532,845 shares in the company, valued at approximately $5,680,127.70. This represents a 5.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $828,019.68. Following the completion of the sale, the chief operating officer owned 1,787,459 shares of the company’s stock, valued at approximately $20,162,537.52. The trade was a 3.94% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 460,922 shares of company stock valued at $5,199,073 over the last ninety days. Insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Several institutional investors and hedge funds have recently modified their holdings of SOUN. Royal Bank of Canada grew its stake in SoundHound AI by 71.3% in the first quarter. Royal Bank of Canada now owns 160,299 shares of the company’s stock valued at $1,301,000 after purchasing an additional 66,714 shares in the last quarter. Integrated Wealth Concepts LLC lifted its holdings in shares of SoundHound AI by 8.9% during the 1st quarter. Integrated Wealth Concepts LLC now owns 14,676 shares of the company’s stock valued at $119,000 after buying an additional 1,201 shares during the last quarter. NewEdge Advisors LLC grew its stake in shares of SoundHound AI by 12.9% in the 1st quarter. NewEdge Advisors LLC now owns 41,030 shares of the company’s stock valued at $333,000 after buying an additional 4,692 shares in the last quarter. Goldman Sachs Group Inc. increased its holdings in SoundHound AI by 69.8% in the first quarter. Goldman Sachs Group Inc. now owns 2,639,689 shares of the company’s stock worth $21,434,000 after buying an additional 1,085,473 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in SoundHound AI by 10.1% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 692,170 shares of the company’s stock valued at $5,620,000 after acquiring an additional 63,398 shares in the last quarter. 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.