SoundHound AI (NASDAQ:SOUN) Trading Up 5.4% on Strong Earnings

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was up 5.4% during mid-day trading on Thursday following a better than expected earnings announcement. The company traded as high as $9.10 and last traded at $8.98. Approximately 41,625,899 shares changed hands during mid-day trading, an increase of 55% from the average daily volume of 26,823,934 shares. The stock had previously closed at $8.52.

The company reported $999.00 earnings per share for the quarter, topping analysts’ consensus estimates of ($0.02) by $999.02. SoundHound AI had a negative net margin of 211.16% and a negative return on equity of 93.64%.

More SoundHound AI News

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

• Positive Sentiment: Launch of “Sales Assist” — SoundHound unveiled a real‑time, voice‑powered Sales Assist agent for retail at MWC, showing a clear path to new enterprise revenue outside automotive and contact centers; the product demo and early market interest are being treated as a near‑term growth catalyst. Why SoundHound AI (SOUN) Is Up 14.2% After Launching Its Sales Assist In-Store Voice Agent
• Positive Sentiment: Bengaluru innovation hub — SoundHound opened a new engineering/innovation hub in Bengaluru to accelerate global rollout of its agentic AI platform, boosting R&D capacity and access to AI talent which supports faster product commercialization. SoundHound AI Establishes New Innovation Hub in Bengaluru
• Positive Sentiment: Recent top‑line momentum and cash runway — Q3 showed strong revenue growth (~68% y/y) and management has guided higher; SoundHound carries meaningful cash and no debt, enabling continued product builds and acquisitions without immediate financing pressure. SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight
• Neutral Sentiment: Analyst and options positioning — Wall Street coverage is generally constructive (moderate buy consensus, multi‑analyst price targets above current levels) and option activity shows concentrated short‑dated speculation around the $9 strike, implying market expects volatility around earnings. SoundHound’s New Sales Assist Agent Put Voice AI Back in the Spotlight
• Negative Sentiment: Earnings risk — Street previews and coverage note expectations for a wider Q4 loss, which is pressuring sentiment ahead of the after‑hours report; a miss on revenue or disappointing margin commentary could reverse recent gains. SoundHound AI under pressure as earnings loom with wider loss expected
• Negative Sentiment: Structural selling and skepticism — High short interest and notable insider sales have been highlighted in recent coverage, adding downside pressure and increasing the stock’s volatility if fundamentals disappoint. SoundHound AI Opens New Innovation Hub in Bengaluru

Wall Street Analysts Forecast Growth

SOUN has been the topic of several recent research reports. DA Davidson set a $14.00 target price on SoundHound AI in a research report on Thursday, January 8th. LADENBURG THALM/SH SH upgraded SoundHound AI to a “strong-buy” rating in a research note on Thursday, December 18th. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of SoundHound AI in a research report on Friday, January 9th. Cantor Fitzgerald upgraded shares of SoundHound AI from a “neutral” rating to an “overweight” rating and boosted their target price for the stock from $13.00 to $15.00 in a report on Friday, December 12th. Finally, Zacks Research raised shares of SoundHound AI from a “strong sell” rating to a “hold” rating in a research report on Monday, February 9th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $16.07.

Insiders Place Their Bets

In related news, insider James Ming Hom sold 42,600 shares of the business’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $480,528.00. Following the completion of the transaction, the insider directly 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 transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Nitesh Sharan sold 60,780 shares of the company’s stock in a transaction on Monday, December 22nd. The shares were sold at an average price of $11.28, for a total transaction of $685,598.40. Following the completion of the sale, the chief financial officer directly owned 1,705,148 shares in the company, valued at approximately $19,234,069.44. The trade was a 3.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 460,922 shares of company stock valued at $5,199,073. Corporate insiders own 9.17% of the company’s stock.

Institutional Trading of SoundHound AI

A number of hedge funds have recently modified their holdings of SOUN. Sound Income Strategies LLC grew its holdings in SoundHound AI by 37.3% during the third quarter. Sound Income Strategies LLC now owns 2,116 shares of the company’s stock worth $34,000 after acquiring an additional 575 shares during the period. Investors Research Corp boosted its position in SoundHound AI by 62.4% in the 3rd quarter. Investors Research Corp now owns 1,822 shares of the company’s stock worth $29,000 after purchasing an additional 700 shares in the last quarter. EP Wealth Advisors LLC grew its stake in shares of SoundHound AI by 5.3% during the 2nd quarter. EP Wealth Advisors LLC now owns 14,100 shares of the company’s stock worth $151,000 after purchasing an additional 706 shares during the period. Newbridge Financial Services Group Inc. increased its holdings in shares of SoundHound AI by 2.7% during the 3rd quarter. Newbridge Financial Services Group Inc. now owns 31,880 shares of the company’s stock valued at $513,000 after purchasing an additional 830 shares in the last quarter. Finally, Insigneo Advisory Services LLC increased its holdings in shares of SoundHound AI by 7.4% during the 3rd quarter. Insigneo Advisory Services LLC now owns 12,416 shares of the company’s stock valued at $200,000 after purchasing an additional 858 shares in the last quarter. Hedge funds and other institutional investors own 19.28% of the company’s stock.

SoundHound AI Stock Performance

The firm’s 50 day moving average is $9.67 and its 200-day moving average is $13.01. The stock has a market capitalization of $3.77 billion, a price-to-earnings ratio of -10.69 and a beta of 2.64.

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.