SoundHound AI (NASDAQ:SOUN) Trading Down 2.4% – Time to Sell?

SoundHound AI, Inc. (NASDAQ:SOUN)’s share price was down 2.4% during trading on Friday . The stock traded as low as $8.00 and last traded at $8.07. Approximately 26,493,777 shares traded hands 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

Wall Street Analysts Forecast Growth

SOUN has been the subject of a number of research reports. LADENBURG THALM/SH SH upgraded shares of SoundHound AI to a “strong-buy” rating in a research report on Thursday, December 18th. HC Wainwright cut their price objective on SoundHound AI from $26.00 to $20.00 and set a “buy” rating for the company in a research report on Monday. Cantor Fitzgerald upgraded SoundHound AI from a “neutral” rating to an “overweight” rating and increased their target price for the company from $13.00 to $15.00 in a report on Friday, December 12th. Piper Sandler reissued a “neutral” rating and set a $9.00 price target (down from $11.00) on shares of SoundHound AI in a research report on Friday, February 27th. Finally, Zacks Research upgraded 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 issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $14.93.

SoundHound AI Stock Down 2.4%

The firm’s 50 day moving average is $9.37 and its 200-day moving average is $12.71. The firm has a market cap of $3.39 billion, a PE ratio of -161.37 and a beta of 2.65.

SoundHound AI (NASDAQ:SOUN) last released its earnings results on Thursday, February 26th. The company reported ($0.02) EPS for the quarter, hitting the consensus estimate of ($0.02). SoundHound AI had a negative net margin of 8.71% and a negative return on equity of 3.63%. The firm had revenue of $55.06 million during the quarter, compared to analysts’ expectations of $53.88 million. During the same period in the previous year, the company earned ($0.05) EPS. SoundHound AI’s revenue for the quarter was up 59.4% on a year-over-year basis. On average, analysts forecast that SoundHound AI, Inc. will post -0.38 earnings per share for the current year.

Insider Transactions at SoundHound AI

In related news, SVP Majid Emami sold 42,600 shares of the stock in a transaction dated Monday, December 22nd. The stock was sold at an average price of $11.28, for a total transaction of $480,528.00. Following the transaction, the senior vice president directly owned 565,586 shares in the company, valued at approximately $6,379,810.08. This represents a 7.00% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider James Ming Hom sold 42,600 shares of the firm’s stock in a transaction dated 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 insider directly owned 803,383 shares in the company, valued at approximately $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. In the last three months, insiders sold 460,922 shares of company stock valued at $5,199,073. Corporate insiders own 9.17% of the company’s stock.

Hedge Funds Weigh In On SoundHound AI

Institutional investors and hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its holdings in SoundHound AI by 16.4% in the third quarter. Vanguard Group Inc. now owns 43,457,569 shares of the company’s stock valued at $698,798,000 after acquiring an additional 6,132,648 shares during the last quarter. Morgan Stanley raised its holdings in shares of SoundHound AI by 48.1% in the 4th quarter. Morgan Stanley now owns 8,987,522 shares of the company’s stock worth $89,606,000 after purchasing an additional 2,917,280 shares during the period. UBS Group AG raised its holdings in shares of SoundHound AI by 77.6% in the 4th quarter. UBS Group AG now owns 6,124,283 shares of the company’s stock worth $61,059,000 after purchasing an additional 2,676,707 shares during the period. Voloridge Investment Management LLC lifted its stake in shares of SoundHound AI by 2,259.7% in the 4th quarter. Voloridge Investment Management LLC now owns 2,199,511 shares of the company’s stock valued at $21,929,000 after purchasing an additional 2,106,298 shares in the last quarter. Finally, Jump Financial LLC purchased a new stake in shares of SoundHound AI during the 3rd quarter worth about $21,679,000. Institutional investors and hedge funds own 19.28% of the company’s stock.

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.