SoundHound AI (NASDAQ:SOUN) Stock Price Down 2.4% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 2.4% during trading on Friday . The company traded as low as $8.00 and last traded at $8.07. Approximately 26,493,777 shares were traded during mid-day trading, a decline of 2% from the average daily volume of 27,102,551 shares. The stock had previously closed at $8.27.

SoundHound AI News Roundup

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

• Positive Sentiment: Company posted record 2025 results — revenue of $168.9M (roughly 100% YoY) and Q4 revenue of $55.1M (up ~59%), underscoring accelerating enterprise demand for voice/AI products. SoundHound AI (SOUN) Reports 2025 Revenue of $168.9M, 100% YoY Growth
• Positive Sentiment: Management projects continued growth into 2026 (firm-level commentary and analyst coverage cite a 2026 revenue outlook in the $225M–$260M range), which supports longer-term upside if execution holds. SoundHound’s 59% Revenue Surge in 2025: What Does 2026 Hold?
• Positive Sentiment: Product and geographic expansion: rollout of a “Sales Assist” voice AI for retail and a new Bengaluru innovation hub could accelerate go‑to‑market and lower R&D/operating costs long-term. SoundHound AI Expands With Sales Assist Rollout And Bengaluru Hub
• Neutral Sentiment: Extremely high short interest (>35% of float) increases volatility — could amplify downward pressure but also raises squeeze speculation; this makes trading choppy regardless of fundamentals. SoundHound Is One of the Most Short Stocks Right Now. Should You Bet on a SOUN Squeeze?
• Negative Sentiment: H.C. Wainwright cut its price target from $26 to $20 (but kept a Buy rating), signaling valuation/near-term risk despite growth — this likely pressured the stock as investors recalibrate upside. HC Wainwright lowered its price target on SoundHound AI, Inc. (SOUN) to $20 and maintains a buy rating
• Negative Sentiment: Analyst pieces and market commentary highlight that SOUN remains unprofitable (negative EPS and margins) and faces valuation risk; several articles flag the stock as risky and note recent share weakness, contributing to selling pressure. Should You Buy, Sell or Hold SoundHound Stock Post Q4 Earnings?
• Negative Sentiment: Coverage pieces and at least one noted analyst downgrade have amplified caution among investors, reinforcing the pullback despite strong revenue prints. SoundHound AI (NASDAQ:SOUN) Stock Price Down 1.3% on Analyst Downgrade

Analysts Set New Price Targets

A number of research analysts have commented on SOUN shares. Weiss Ratings restated a “sell (d-)” rating on shares of SoundHound AI in a research note on Friday, January 9th. DA Davidson set a $14.00 price target on SoundHound AI in a report on Thursday, January 8th. Cantor Fitzgerald raised SoundHound AI from a “neutral” rating to an “overweight” rating and upped their price objective for the company from $13.00 to $15.00 in a research note on Friday, December 12th. Piper Sandler reaffirmed a “neutral” rating and set a $9.00 price objective (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, HC Wainwright dropped their target price on SoundHound AI from $26.00 to $20.00 and set a “buy” rating on the stock in a report on Monday. 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 MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 2.4%

The stock has a market capitalization of $3.39 billion, a PE ratio of -161.37 and a beta of 2.65. The firm’s fifty day moving average is $9.37 and its 200-day moving average is $12.71.

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 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 firm’s quarterly revenue was up 59.4% on a year-over-year basis. During the same quarter in the previous year, the firm posted ($0.05) EPS. On average, analysts expect that SoundHound AI, Inc. will post -0.38 EPS for the current year.

Insider Transactions at SoundHound AI

In other SoundHound AI news, SVP Majid Emami sold 42,600 shares of the firm’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total value of $480,528.00. Following the completion of the sale, the senior vice president owned 565,586 shares of the company’s stock, valued at approximately $6,379,810.08. This trade represents a 7.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider James Ming Hom sold 42,600 shares of the business’s stock in a transaction on Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $480,528.00. Following the sale, the insider owned 803,383 shares in the company, valued at $9,062,160.24. The trade was a 5.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 460,922 shares of company stock valued at $5,199,073 in the last three months. Insiders own 9.17% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. SHP Wealth Management acquired a new stake in shares of SoundHound AI during the 4th quarter valued at approximately $27,000. Virtu Financial LLC increased its stake in SoundHound AI by 43.9% in the 4th quarter. Virtu Financial LLC now owns 219,773 shares of the company’s stock valued at $2,191,000 after purchasing an additional 67,088 shares in the last quarter. Alpine Woods Capital Investors LLC raised its holdings in SoundHound AI by 143.0% during the fourth quarter. Alpine Woods Capital Investors LLC now owns 50,742 shares of the company’s stock worth $506,000 after purchasing an additional 29,857 shares during the last quarter. Vident Advisory LLC boosted its position in SoundHound AI by 16.2% during the fourth quarter. Vident Advisory LLC now owns 27,840 shares of the company’s stock worth $278,000 after purchasing an additional 3,875 shares in the last quarter. Finally, EP Wealth Advisors LLC acquired a new stake in SoundHound AI in the fourth quarter valued at $146,000. 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.