SoundHound AI (NASDAQ:SOUN) Upgraded at Wall Street Zen

Wall Street Zen upgraded shares of SoundHound AI (NASDAQ:SOUN) from a strong sell rating to a sell rating in a research note released on Sunday morning,Wall Street Zen reports.

Several other brokerages also recently commented on SOUN. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of SoundHound AI in a report on Monday, June 15th. DA Davidson decreased their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a report on Thursday, August 6th. Finally, Piper Sandler dropped their target price on shares of SoundHound AI from $8.00 to $7.00 and set a “neutral” rating on the stock in a research report on Thursday, August 6th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $13.00.

SoundHound AI Trading Down 4.9%

Shares of SoundHound AI stock opened at $6.15 on Friday. The stock has a market capitalization of $2.73 billion, a price-to-earnings ratio of -16.18 and a beta of 2.66. SoundHound AI has a twelve month low of $5.65 and a twelve month high of $22.17. The business’s 50 day simple moving average is $6.72 and its 200-day simple moving average is $7.26.

SoundHound AI (NASDAQ:SOUN) last issued its quarterly earnings data on Wednesday, August 5th. The company reported ($0.02) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.13) by $0.11. The business had revenue of $61.90 million during the quarter, compared to the consensus estimate of $52.38 million. SoundHound AI had a negative return on equity of 30.22% and a negative net margin of 67.45%.The business’s revenue was up 45.0% on a year-over-year basis. During the same period in the previous year, the firm posted ($0.19) earnings per share. Sell-side analysts predict that SoundHound AI will post -0.33 earnings per share for the current year.

Institutional Investors Weigh In On SoundHound AI

Hedge funds and other institutional investors have recently modified their holdings of the stock. Prospera Financial Services Inc boosted its position in shares of SoundHound AI by 5.9% in the 4th quarter. Prospera Financial Services Inc now owns 30,690 shares of the company’s stock worth $306,000 after purchasing an additional 1,699 shares during the last quarter. Hilltop Holdings Inc. increased its holdings in SoundHound AI by 3.5% in the first quarter. Hilltop Holdings Inc. now owns 51,358 shares of the company’s stock valued at $353,000 after purchasing an additional 1,753 shares during the last quarter. Sterling Investment Counsel LLC lifted its stake in SoundHound AI by 10.5% in the first quarter. Sterling Investment Counsel LLC now owns 22,787 shares of the company’s stock valued at $157,000 after buying an additional 2,173 shares during the period. Empowered Funds LLC boosted its holdings in SoundHound AI by 19.6% during the first quarter. Empowered Funds LLC now owns 13,896 shares of the company’s stock worth $95,000 after buying an additional 2,277 shares during the last quarter. Finally, Hollencrest Capital Management increased its stake in shares of SoundHound AI by 197.5% in the 1st quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after acquiring an additional 2,400 shares during the last quarter. Institutional investors and hedge funds own 19.28% of the company’s stock.

More SoundHound AI News

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

• Positive Sentiment: SoundHound shares participated in a broader software-sector rally, as investors rotated into beaten-down AI names following renewed debate about the outlook for enterprise AI. This provided a short-term, sector-driven lift rather than a company-specific fundamental catalyst. C3.ai Jumps 7% as Software Rally Lifts Beaten-Down AI Names; UiPath Climbs 8%, SoundHound AI Gains 5%
• Positive Sentiment: SOUN was identified as a potential short-squeeze candidate. Heavy short interest could amplify gains if the company produces favorable news, although this is a technical and speculative factor rather than evidence of improving fundamentals. These 10 Stocks Are Squeeze Candidates Waiting to Happen
• Neutral Sentiment: Recent investor attention and search activity have increased visibility around SoundHound, but the coverage does not identify a new earnings, contract, or product catalyst. SoundHound AI Is Attracting Investor Attention
• Negative Sentiment: Share weakness and underperformance versus the broader market indicate that investors remain cautious, particularly with SOUN trading below its longer-term moving averages. SoundHound AI Falls More Steeply Than the Broader Market
• Negative Sentiment: Kahn Swick & Foti announced an investigation into SoundHound’s officers and directors in connection with the company’s prior acquisitions of SYNQ3 and Amelia Holdings. The investigation introduces potential governance and legal overhang, even though no adverse finding was reported in the announcement. SoundHound AI Investigation Initiated
• Negative Sentiment: Analysts and investors continue to question whether SoundHound’s rapid revenue growth is being generated organically. The company’s latest reported quarter showed strong revenue growth and a smaller-than-expected loss, but it remains unprofitable, making proof of sustainable organic expansion important to the valuation. This Is the Biggest Problem With SoundHound AI Stock

About SoundHound AI

SoundHound AI, Inc develops conversational artificial intelligence and voice-enabled technologies. Its platform is designed to let users interact with devices, applications and services through natural-language speech, supporting functions such as information retrieval, question answering and task completion.

The company’s offerings include the Houndify conversational AI platform, which businesses can use to build branded voice assistants, as well as SoundHound Chat AI, an in-car and consumer-oriented voice assistant that combines conversational capabilities with access to information and services.