SoundHound AI (NASDAQ:SOUN) Shares Down 2.7% – Here’s What Happened

SoundHound AI, Inc. (NASDAQ:SOUN) traded down 2.7% on Tuesday. The stock traded as low as $5.71 and last traded at $5.72. Approximately 17,929,305 shares were traded during trading, a decline of 35% from the average daily volume of 27,450,211 shares. The stock had previously closed at $5.88.

Trending Headlines about SoundHound AI

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

• Positive Sentiment: SoundHound is expanding its OASYS platform beyond vehicles into TVs and other connected devices. The company aims to make these endpoints channels for agentic AI services and transactions, potentially broadening its addressable market and monetization opportunities. SoundHound Expands IoT Footprint: Can Agentic AI Reach More Devices?
• Positive Sentiment: The rollout of SoundHound’s voice and generative AI capabilities in the Kia Sorento in India, together with the OASYS Edge embedded architecture, supports the company’s strategy of delivering private, on-device AI across cars and smart devices. Recent commentary also points to strong quarterly revenue growth and a higher full-year revenue outlook. Is SoundHound AI’s Kia Sorento Rollout and OASYS Edge Debut Reframing The Investment Case For SOUN?
• Positive Sentiment: Analysts and financial commentary describe improving enterprise voice-AI revenue and commercial momentum across multiple industries, strengthening the long-term growth case relative to some other speculative AI companies. BigBear.ai vs. SoundHound AI
• Neutral Sentiment: SoundHound is receiving elevated investor attention and is a trending stock, but the coverage emphasizes that popularity alone does not determine its prospects; execution, revenue growth and cash generation remain the key factors. Here is What to Know Beyond Why SoundHound AI Is a Trending Stock
• Negative Sentiment: Bearish commentary highlights that SOUN remains a high-risk, loss-making company. Although its growth opportunity is substantial, the stock may require more time to regain momentum, and investors continue to question valuation and the path to profitability. SoundHound AI Stock Outlook
• Negative Sentiment: The stock’s 41% decline in 2026 and continued losses have prompted debate over whether the lower price represents a bargain or a value trap. This risk-off view is weighing against the company’s product launches and growth prospects. SoundHound AI Stock Is Down 41% in 2026

Wall Street Analysts Forecast Growth

A number of analysts have recently issued reports on the company. Weiss Ratings restated a “sell (e+)” rating on shares of SoundHound AI in a research report on Friday, September 11th. DA Davidson dropped their target price on shares of SoundHound AI from $12.00 to $10.00 and set a “buy” rating for the company in a research report on Thursday, August 6th. Piper Sandler cut their price target on shares of SoundHound AI from $7.00 to $6.00 and set a “neutral” rating for the company in a report on Tuesday, September 22nd. Finally, Wall Street Zen lowered shares of SoundHound AI from a “sell” rating to a “strong sell” rating in a research report on Saturday, September 26th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $12.75.

SoundHound AI Stock Down 2.7%

The business’s fifty day moving average is $6.59 and its two-hundred day moving average is $7.05. The firm has a market cap of $2.54 billion, a price-to-earnings ratio of -15.05 and a beta of 2.73.

SoundHound AI (NASDAQ:SOUN) last posted 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 firm had revenue of $61.90 million for 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 for the quarter was up 45.0% compared to the same quarter last year. During the same quarter in the prior year, the business earned ($0.19) EPS. Research analysts forecast that SoundHound AI, Inc. will post -0.32 EPS for the current year.

Insider Buying and Selling

In other SoundHound AI news, COO Michael Zagorsek sold 71,113 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total transaction of $450,145.29. Following the transaction, the chief operating officer owned 2,600,231 shares of the company’s stock, valued at $16,459,462.23. The trade was a 2.66% decrease in their position. 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 38,730 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $6.33, for a total value of $245,160.90. Following the sale, the senior vice president owned 834,253 shares in the company, valued at approximately $5,280,821.49. This represents a 4.44% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 288,758 shares of company stock valued at $1,828,598 in the last ninety days. 8.84% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. SHP Wealth Management acquired a new stake in shares of SoundHound AI in the 4th quarter valued at approximately $27,000. Hollencrest Capital Management boosted its position in SoundHound AI by 197.5% in the first quarter. Hollencrest Capital Management now owns 3,615 shares of the company’s stock valued at $25,000 after buying an additional 2,400 shares in the last quarter. Vermillion Wealth Management Inc. boosted its position in SoundHound AI by 92.0% in the first quarter. Vermillion Wealth Management Inc. now owns 9,200 shares of the company’s stock valued at $63,000 after buying an additional 4,409 shares in the last quarter. Clarus Group Inc. bought a new stake in shares of SoundHound AI during the first quarter worth $69,000. Finally, 180 Wealth Advisors LLC bought a new stake in shares of SoundHound AI during the first quarter worth $69,000. Institutional investors own 19.28% of the company’s stock.

About SoundHound AI

SoundHound AI, Inc develops voice artificial intelligence technologies that enable people to interact with products and services using natural language. Its platform is designed to understand conversational speech, answer questions, and support voice-enabled experiences across automotive, restaurant, consumer electronics and other industries.

The company’s offerings include the Houndify voice AI platform, which businesses can use to build customized voice assistants, and SoundHound Chat AI, a conversational assistant designed to provide responses and complete tasks through voice interaction.