SoundHound AI (NASDAQ:SOUN) Stock Price Down 4.8% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price fell 4.8% during mid-day trading on Friday . The stock traded as low as $6.47 and last traded at $6.55. 29,738,476 shares traded hands during trading, an increase of 8% from the average session volume of 27,601,961 shares. The stock had previously closed at $6.88.

Key Stories Impacting SoundHound AI

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

• Positive Sentiment: An analyst told media the shares could potentially double despite the CFO news, offering a bullish counterpoint that could attract speculative buying if confidence in execution returns. Analyst says SoundHound stock can double as CFO announces departure
• Positive Sentiment: SoundHound announced a commercial win with Peet’s Coffee to deploy its Employee Assist voice agent across the U.S. store footprint — a tangible enterprise customer and validation of recurring revenue opportunities. Peet’s Coffee Partners with SoundHound AI
• Positive Sentiment: Investor commentary outlets continued to list SOUN among under-the-radar AI names with multibagger potential, which can support longer-term interest from growth-focused investors. Prediction: These 3 Under-the-Radar Artificial Intelligence (AI) Stocks Could Be Multibaggers by End of 2026
• Neutral Sentiment: The company announced an interim finance leadership plan: co‑founder and former CFO James Hom will step in as interim CFO, which reduces near-term uncertainty but leaves longer-term succession questions open. SoundHound AI Announces CFO Transition
• Neutral Sentiment: Nitesh Sharan’s move to Quantinuum is confirmed — a routine executive move that explains the departure but doesn’t directly alter SoundHound’s product roadmap. Nitesh Sharan Joins Quantinuum as Chief Financial Officer
• Negative Sentiment: Shares sold off intraday amid the CFO transition and broader Voice-AI competition narrative (including Nvidia moves), with coverage noting a roughly 6% drop and break below a key $7 level — technical weakness that can trigger further selling. SoundHound AI Sinks 6%: What NVIDIA’s Voice AI Bet Says About The Broader Market
• Negative Sentiment: Multiple outlets attribute today’s selling pressure directly to the CFO departure, reflecting investor sensitivity to leadership turnover at a growth-stage AI company that is still not profitable. Why Is SoundHound AI Stock Tumbling Today?

Wall Street Analyst Weigh In

SOUN has been the topic of several research analyst reports. HC Wainwright dropped their price objective on shares of SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a research report on Monday, March 2nd. Piper Sandler reiterated a “neutral” rating and issued a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research note on Friday, February 27th. DA Davidson set a $14.00 price target on shares of SoundHound AI in a report on Thursday, January 8th. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Finally, LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a report on Thursday, December 18th. One equities research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $14.93.

SoundHound AI Trading Down 5.1%

The stock has a market cap of $2.74 billion, a P/E ratio of -130.57 and a beta of 2.65. The stock has a 50 day simple moving average of $8.78 and a 200 day simple moving average of $12.36.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, February 26th. The company reported ($0.02) earnings per share (EPS) for the quarter, hitting the consensus estimate of ($0.02). The company had revenue of $55.06 million for the quarter, compared to analyst estimates of $53.88 million. SoundHound AI had a negative return on equity of 3.63% and a negative net margin of 8.71%.SoundHound AI’s quarterly revenue was up 59.4% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.05) EPS. Equities analysts anticipate that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Activity at SoundHound AI

In related news, COO Michael Zagorsek sold 73,406 shares of the stock in a transaction that occurred on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $828,019.68. Following the sale, the chief operating officer owned 1,787,459 shares in the company, valued at approximately $20,162,537.52. This trade represents a 3.94% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CTO Timothy Stonehocker sold 29,676 shares of SoundHound AI stock in a transaction that occurred on Friday, January 9th. The shares were sold at an average price of $12.00, for a total transaction of $356,112.00. Following the completion of the transaction, the chief technology officer directly owned 544,179 shares in the company, valued at $6,530,148. This trade represents a 5.17% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 460,922 shares of company stock worth $5,199,073 in the last 90 days. Corporate insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

Several large investors have recently bought and sold shares of SOUN. Northwestern Mutual Wealth Management Co. grew its position in SoundHound AI by 83.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 2,336 shares of the company’s stock valued at $25,000 after acquiring an additional 1,060 shares during the last quarter. Dogwood Wealth Management LLC boosted its stake 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 purchasing an additional 1,544 shares in the last quarter. Danske Bank A S acquired a new stake in shares of SoundHound AI in the 3rd quarter valued at approximately $26,000. Advisors Asset Management Inc. grew its holdings in shares of SoundHound AI by 68.4% during the 2nd quarter. Advisors Asset Management Inc. now owns 2,519 shares of the company’s stock valued at $27,000 after purchasing an additional 1,023 shares during the last quarter. Finally, SHP Wealth Management acquired a new position in SoundHound AI during the 4th quarter worth approximately $27,000. 19.28% of the stock is owned by institutional investors and hedge funds.

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.