SoundHound AI (NASDAQ:SOUN) Stock Price Down 7% – What’s Next?

SoundHound AI, Inc. (NASDAQ:SOUN)’s stock price was down 7% on Monday . The stock traded as low as $7.40 and last traded at $7.46. Approximately 35,431,424 shares traded hands during trading, an increase of 22% from the average session volume of 29,087,770 shares. The stock had previously closed at $8.02.

Key SoundHound AI News

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

• Positive Sentiment: Institutional Shareholder Services recommended that LivePerson stockholders vote “FOR” the proposed transaction with SoundHound AI. ISS joins Glass Lewis and LivePerson’s board in supporting the deal ahead of the August 20 special meeting, reducing a key approval risk. ISS recommends approval of SoundHound AI transaction
• Positive Sentiment: OASYS is being positioned as a growth driver for enterprise customers by shortening sales cycles, accelerating implementations, and helping convert pilots into larger contracts. This could improve SoundHound’s ability to win larger and more recurring business. OASYS enterprise growth analysis
• Positive Sentiment: Recent coverage highlights SoundHound’s record quarterly revenue, 45% year-over-year growth, an earnings beat, and raised 2026 revenue guidance. Analysts also view OASYS and the LivePerson deal as potential catalysts for continued expansion. SoundHound AI Q2 earnings analysis
• Neutral Sentiment: The consensus analyst price target implies approximately 56% upside for SOUN, but the article cautions that price targets alone have historically been unreliable. Positive earnings-estimate revisions may be a more meaningful near-term signal. SoundHound AI analyst price target
• Neutral Sentiment: A report showing zero short interest and a zero-day short-cover ratio appears inconsistent with SoundHound’s trading activity and may reflect a data issue, limiting its usefulness for assessing short-squeeze potential.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on SOUN shares. Weiss Ratings reiterated a “sell (e+)” rating on shares of SoundHound AI in a research report on Monday, June 15th. LADENBURG THALM/SH SH raised shares of SoundHound AI to a “strong-buy” rating in a research report on Wednesday, May 6th. Piper Sandler decreased their price target 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, August 6th. Finally, DA Davidson lowered their price target on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating on the stock in a research report on Thursday, August 6th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $13.60.

SoundHound AI Stock Down 1.1%

The firm has a market capitalization of $3.17 billion, a P/E ratio of -19.29 and a beta of 2.64. The firm has a 50 day moving average of $6.73 and a 200-day moving average of $7.54.

SoundHound AI (NASDAQ:SOUN) last announced its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.13) by $0.11. The firm had revenue of $61.90 million during the quarter, compared to analysts’ expectations of $52.38 million. SoundHound AI had a negative return on equity of 31.06% and a negative net margin of 67.45%.The company’s quarterly revenue was up 45.0% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.19) EPS. As a group, research analysts expect that SoundHound AI, Inc. will post -0.45 EPS for the current year.

Insiders Place Their Bets

In related news, CTO Timothy Stonehocker sold 18,802 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total value of $140,262.92. Following the completion of the transaction, the chief technology officer owned 502,290 shares of the company’s stock, valued at $3,747,083.40. The trade was a 3.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Majid Emami sold 28,843 shares of the company’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $7.46, for a total transaction of $215,168.78. Following the sale, the senior vice president directly owned 472,983 shares of the company’s stock, valued at $3,528,453.18. This represents a 5.75% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 268,022 shares of company stock valued at $1,999,444 over the last 90 days. 8.84% of the stock is owned by company insiders.

Institutional Trading of SoundHound AI

Several large investors have recently made changes to their positions in SOUN. Handelsbanken Fonder AB increased its stake in SoundHound AI by 17.4% in the second quarter. Handelsbanken Fonder AB now owns 124,000 shares of the company’s stock valued at $802,000 after acquiring an additional 18,400 shares during the last quarter. Focus Financial Network Inc. lifted its stake in SoundHound AI by 21.4% during the second quarter. Focus Financial Network Inc. now owns 48,229 shares of the company’s stock worth $312,000 after purchasing an additional 8,516 shares during the last quarter. IFC & Insurance Marketing Inc. boosted its holdings in shares of SoundHound AI by 17.9% in the 2nd quarter. IFC & Insurance Marketing Inc. now owns 42,255 shares of the company’s stock valued at $273,000 after purchasing an additional 6,427 shares in the last quarter. Hennion & Walsh Asset Management Inc. boosted its holdings in shares of SoundHound AI by 19.2% in the 2nd quarter. Hennion & Walsh Asset Management Inc. now owns 118,662 shares of the company’s stock valued at $768,000 after purchasing an additional 19,133 shares in the last quarter. Finally, Empowered Funds LLC increased its stake in shares of SoundHound AI by 19.6% in the 1st quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock valued at $95,000 after purchasing an additional 2,277 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.