SoundHound AI (NASDAQ:SOUN) Trading Up 10.1% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price rose 10.1% on Thursday . The company traded as high as $8.19 and last traded at $7.08. Approximately 88,400,921 shares changed hands during trading, an increase of 207% from the average session volume of 28,773,703 shares. The stock had previously closed at $6.43.

Key SoundHound AI News

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

• Positive Sentiment: Record revenue and earnings beat: Second-quarter revenue rose 45% year over year to $61.9 million, well above the approximately $42.6 million consensus estimate. The adjusted loss of $0.02 per share also beat expectations, while profitability metrics and margins improved. SoundHound Q2 Earnings Beat on OASYS Demand, Revenues Top, Stock Up
• Positive Sentiment: Higher full-year outlook: SoundHound raised its 2026 revenue floor, citing OASYS-driven enterprise adoption, faster deal conversions and broader customer demand. Management also emphasized continued margin improvement despite ongoing investment. SOUN Raises 2026 Revenue Outlook After OASYS Drives Record Q2 Sales
• Positive Sentiment: Potential strategic catalyst: Proxy adviser Glass Lewis recommended that LivePerson stockholders vote in favor of the proposed transaction with SoundHound at the August 20 special meeting, supporting the planned expansion of SoundHound’s conversational-AI capabilities. Glass Lewis Recommends LivePerson Stockholders Vote For SoundHound AI Transaction
• Positive Sentiment: Trading momentum: Heavy call-option activity and high short interest may be amplifying the post-earnings move as bullish traders participate and short sellers cover positions.
• Neutral Sentiment: Analyst support is mixed: DA Davidson maintained a Buy rating while lowering its price target from $12 to $10. Piper Sandler cut its target from $8 to $7 and retained a Neutral rating.
• Negative Sentiment: Valuation and financial risks: Analysts note that SOUN remains expensive relative to sales, with projected 2026 growth needing to justify the premium. The company continues to report losses and cash burn, while potential dilution and execution risks could limit further upside. SOUN Dips 16.9% in 3 Months

Wall Street Analyst Weigh In

SOUN has been the topic of a number of recent analyst reports. Piper Sandler decreased their price objective on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research note on Thursday. LADENBURG THALM/SH SH raised SoundHound AI to a “strong-buy” rating in a report on Wednesday, May 6th. DA Davidson lowered their price target on SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday. Finally, Weiss Ratings reissued a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $14.00.

SoundHound AI Trading Up 13.3%

The stock’s 50-day moving average is $6.79 and its 200-day moving average is $7.61. The firm has a market capitalization of $3.47 billion, a price-to-earnings ratio of -21.10 and a beta of 2.64.

SoundHound AI (NASDAQ:SOUN) last issued its earnings results on Tuesday, August 4th. The company reported ($0.10) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.13) by $0.03. The firm had revenue of $61.90 million for the quarter, compared to analyst estimates of $52.38 million. SoundHound AI had a negative net margin of 67.45% and a negative return on equity of 31.06%. The company’s quarterly revenue was up 45.0% on a year-over-year basis. During the same quarter last year, the business posted ($0.19) earnings per share. On average, equities research analysts anticipate that SoundHound AI, Inc. will post -0.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Keyvan Mohajer sold 126,540 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $943,988.40. Following the sale, the chief executive officer owned 1,947,237 shares of the company’s stock, valued at $14,526,388.02. This trade represents a 6.10% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Michael Zagorsek sold 64,994 shares of the business’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $484,855.24. Following the sale, the chief operating officer owned 1,669,497 shares in the company, valued at $12,454,447.62. This represents a 3.75% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 268,022 shares of company stock worth $1,999,444 in the last ninety days. Insiders own 8.84% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SOUN. Morgan Stanley lifted its holdings in shares of SoundHound AI by 48.1% during the fourth quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG increased its holdings in 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 holdings 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 period. Vanguard Group Inc. raised its position in SoundHound AI by 4.4% during the 4th quarter. Vanguard Group Inc. now owns 45,367,437 shares of the company’s stock worth $452,313,000 after purchasing an additional 1,909,868 shares during the last quarter. Finally, Jump Financial LLC bought a new position in SoundHound AI during the 3rd quarter worth $21,679,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.